South Korea’s KOSPI falls 9.99%, then rebounds 4% as Samsung and SK Hynix swing
A chip-led selloff triggered a market-wide halt, hit crypto and regional tech assets, then gave way to a partial rebound that highlighted KOSPI’s concentration in Samsung and SK Hynix.
South Korea’s KOSPI plunged 9.99% to about 8,204 after Samsung Electronics and SK Hynix each fell more than 12%, triggering a market-wide trading halt and underscoring how heavily the benchmark depends on the two chipmakers. The selloff spread across Asian and U.S. technology shares and into crypto, with Bitcoin briefly dropping below $62,000 before recovering near $62,500, while volatility gauges rose and crypto-linked stocks weakened. In a subsequent session, the KOSPI rebounded 4% as Samsung and SK Hynix led gains, but the sharp reversal again highlighted concentration and leverage risks in South Korea’s market.
- trading halt: A temporary market suspension triggered to pause trading during extreme price moves.
- leveraged ETFs: Exchange-traded funds designed to deliver a multiple of an asset’s daily move, which can magnify both gains and losses.
- market concentration: Heavy index reliance on a few large companies, which can amplify both declines and rebounds.