South Korea’s stock market just had the worst month in its history. The KOSPI index fell approximately 23% in July 2026, wiping out roughly ₩250 trillion in market capitalization and triggering a record number of circuit breakers along the way.
How the collapse unfolded
The KOSPI peaked at 9,114 in June 2026, riding a wave of AI and semiconductor euphoria that had propelled South Korean tech giants to historic valuations.
By early July, the index had already slipped below 8,000 points.
On July 7, the sixth circuit breaker of 2026 was triggered as selling accelerated. Circuit breakers are automatic trading halts designed to prevent panic selling from spiraling out of control. South Korea’s version kicks in when the KOSPI drops more than a set percentage from the previous close.
