South Korea’s KOSPI index cratered as much as 8.8% on June 8, plunging to the 7,442-7,477 range and triggering the Korea Exchange’s Level 1 circuit breaker. Trading was automatically halted for 20 minutes as the AI and semiconductor trade, which had propelled the index past 8,000 just weeks earlier, violently reversed course.
The selloff wasn’t subtle. Samsung Electronics and SK Hynix, the two heavyweights that together represent roughly 40% of the KOSPI index, each fell nearly 10%.
The AI trade unwinds
The KOSPI had recently cleared the 8,000 level on the back of surging enthusiasm for artificial intelligence and semiconductor stocks. The damage wasn’t confined to the main board. The KOSDAQ index, South Korea’s tech-heavy secondary exchange, dropped more than 7% during the same session.
This marks the second time in 2026 that the KOSPI’s circuit breaker has been activated. The first was back in March, triggered by geopolitical tensions in the Middle East.
