South Korea $2 trillion stock rout breaks records as SK Hynix results disappoint - Yahoo! Finance Canada

On July 29, 2026, South Korean stocks suffered a sharp downturn, with the KOSPI index plunging as much as 12.6% in a single day, closing down 6%, marking one of the steepest monthly declines in histor... Read original →

The disappointing earnings from SK Hynix triggered a sharp sell-off in the South Korean stock market, revealing vulnerabilities in the AI investment bubble. Downstream semiconductor suppliers face declining demand, while midstream packaging firms are also affected. Regulatory tightening on leveraged ETFs failed to prevent panic, instead intensifying forced liquidations. This correction highlights systemic risks in a previously high-growth, low-volatility environment. Samsung Electronics may pivot toward AI-centric memory and storage solutions to capitalize on market shifts. Short-term recovery hinges on policy clarity and capital inflows. In the longer term, global supply chains will likely become more geographically diversified, forcing South Korea to balance technological sovereignty with financial stability.