South Korea’s KOSPI index has had a rough stretch. The benchmark fell 8.8% on June 8 and then dropped another 10% on June 23, a decline sharp enough to trigger trading halts as the market tried to catch its breath.
Two stocks, half a market
Samsung Electronics and SK Hynix together account for roughly half the KOSPI’s total market value. On June 23, both stocks dropped more than 12% in a single session.
Foreign investors liquidated more than $10 billion worth of KOSPI shares during June. Margin debt in South Korean stocks reached record highs in June as retail investors had chased the AI rally on borrowed money.
A government betting big on the same trade
