KOSPI Slides 5.7%, Nears Bear Market as Samsung (005930.KS) Drops 6.9% and SK Hynix (000660.KS) Falls 5%

South Korea’s KOSPI index tumbled 5.7% on July 8, 2026, pushing the benchmark toward bear market territory. Samsung Electronics dropped 6.9%, while SK Hynix fell 5%. The selloff extended a brutal stretch that began with a historic circuit breaker in Samsung shares on July 7. Foreign investors dumped hundreds of billions of won in semiconductor stocks.The KOSPI remains over 20% below its all-time high of 9,385.59, recorded on June 22, 2026. 

KOSPI Nears Bear Market as Chip Stocks Crumble

The KOSPI’s steep drop marks one of its worst sessions of 2026 so far. Wednesday’s selloff followed a global tech rout led by chipmakers on Wall Street overnight. Investors grew increasingly nervous about whether AI infrastructure spending can sustain its current pace. Samsung and SK Hynix together account for more than half the index’s total market weight.

• KOSPI fell 5.7%, extending losses from Tuesday’s circuit-breaker session.
• The index remains over 20% below its June 22 record of 9,385.59.
• Foreign institutional investors led the selling across semiconductor and tech shares.

Domestic retail investors kept buying the dip, though their purchases couldn’t offset the scale of foreign outflows.

Why Samsung and SK Hynix Are Under Pressure

Samsung’s 6.9% drop came despite the company posting record preliminary second-quarter results. Samsung forecast operating profit of 89.4 trillion won, or roughly $58.44 billion. That figure represents a 19-fold jump from the same quarter last year. Revenue is expected to climb 129% to 171 trillion won, driven by AI-related memory demand. Yet investors treated the guidance as a “sell the news” moment, triggering Tuesday’s historic circuit breaker.

🚨 BLOODBATH continues in South Korean and Japanese markets.

Over $400 BILLION has been wiped out from South Korean and Japanese stock markets today as the sell-off in semiconductor and tech stocks continues.

South Korea's KOSPI closed down -5.35%, wiping out… pic.twitter.com/7YHVuDgmJO

— Bull Theory (@BullTheoryio) July 8, 2026

SK Hynix’s 5% decline also came ahead of its planned $29 billion Nasdaq depositary receipt listing. That listing adds fresh uncertainty around near-term share supply and valuation. Both chipmakers have surged sharply in 2026 on artificial intelligence and high-bandwidth memory demand. Wednesday’s pullback reflects profit-taking after months of outsized gains across the sector.

Broader Market Fallout Across Korean Stocks

The KOSPI selloff spread well beyond Samsung and SK Hynix into other major sectors. LG Energy Solution, a leading battery manufacturer, slipped alongside broader EV demand concerns. SK Square, the largest shareholder of SK Hynix, also posted sharp losses on Wednesday.

• Hyundai Motor (HYUNDAI.NS) and Kia Corp both declined amid the broader risk-off mood.
• HD Hyundai Heavy Industries and Hanwha Aerospace saw losses in defense-linked shares.
• The Korean won weakened further, adding pressure on foreign investor sentiment.

President Lee Jae Myung urged officials to accelerate AI and semiconductor investment projects despite the selloff.

Global Ripple Effects on Chip Stocks

The KOSPI’s slide triggered ripple effects across global memory and semiconductor markets overnight. Micron Technology and Western Digital (WDC) fell roughly 5% in premarket US trading. SanDisk (SNDK) dropped 4.8%, while Intel and Advanced Micro Devices (AMD) each declined over 3%. Nvidia (NVDA) slipped nearly 1% as traders reassessed AI hardware demand assumptions. The Roundhill Memory ETF, which holds Samsung, SK Hynix, and Micron as top positions, dropped 5.8%. Japan’s Nikkei 225 also fell in sympathy, dropping 1.34% during the same session. Kioxia stood out as one of the few gainers across the region.

Final Thoughts

The KOSPI’s slide into bear market territory shows how quickly sentiment can shift after months of AI-fueled gains. Samsung’s blowout earnings guidance wasn’t enough to stop investors from booking profits after a historic rally. 

SK Hynix’s upcoming Nasdaq listing adds another layer of uncertainty heading into the back half of 2026. With foreign investors still selling and global chip stocks under pressure, volatility looks set to continue. Traders will now watch whether South Korea’s government support for AI and semiconductors can stabilize sentiment.

Disclaimer:

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