Why South Korea’s KOSPI Crashed 26% After Nearing 10,000
AI-Generated Image South Korea’s stock market was recently approaching what once seemed like an impossible milestone: KOSPI 10,000. Driven by an extraordinary rally in artificial intelligence and semiconductor stocks, the benchmark KOSPI index climbed above 9,000 for the first time in June 2026. Investors began to believe that the Korean market was entering a new era. That optimism did not last long. Within approximately one month, the KOSPI fell from its record high above 9,100 to the 6,000 range. Samsung Electronics and SK Hynix, the two semiconductor giants that had powered the rally, suffered even steeper declines. What caused one of the most dramatic reversals in the history of South Korea’s stock market? The KOSPI’s Rapid Rise Toward 10,000 The KOSPI first surpassed 8,000 on May 22, 2026. Less than a month later, it broke through 9,000 and reached an annual high of 9,114.55 on June 22. The rally was largely driven by expectations surrounding artificial intelligence, ...