Kospi plunges. Seoul stock market suffers nearly 10% one-day drop
Heavy selling in semiconductor giants Samsung Electronics and SK Hynix followed regulators’ warnings over leveraged ETFs and excessive market speculation.
A dramatic sell-off hit South Korea’s stock market on June 23, 2026, as the Kospi index closed down 9.99%, marking one of its sharpest declines in recent months.
The plunge was largely driven by heavy losses in technology and semiconductor stocks. Samsung Electronics and SK Hynix both fell more than 12% after investors reacted to regulatory warnings about the growing risks associated with leveraged exchange-traded funds (ETFs) and margin-financed trading.
Key highlights:
• Kospi dropped 9.99% to 8,203.84 points.
• Samsung Electronics and SK Hynix each lost more than 12%.
• Trading was temporarily halted for 20 minutes after a market circuit breaker was triggered.
• Investors grew concerned about speculative activity linked to leveraged ETFs and margin debt.
• Foreign investors accelerated selling pressure across the semiconductor sector.
The sharp decline underscores rising concerns about market overheating and investor leverage, prompting increased scrutiny from South Korean financial regulators.
Andrea Pelucchi
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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