Kospi drops as much as 6.4% as Samsung, SK Hynix tumble
Why it matters: Two AI-linked chip stocks drove nearly three-quarters of the index’s 2026 gains, leaving the rally exposed to a sharp reversal.
South Korea’s stock market showed signs of strain Friday after a blistering rally, with the Kospi falling as much as 6.4% and the exchange briefly halting program selling as futures slid. Samsung Electronics and SK Hynix each dropped more than 7%, underscoring how heavily the index depends on the two chipmakers. The Kospi had more than doubled this year through Thursday, but Korea Exchange data cited in the report showed Samsung and SK Hynix make up 54% of the index’s market value and generated about half of average daily turnover in May. Retail demand has also weakened: brokerage deposits fell to 121 trillion won by May 22 from 137 trillion won on May 12, while margin balances hit a record 38 trillion won on May 29.