Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in

Jump to content
Independent Bulletin homepage

Why South Korea’s stock index has plunged by 12%

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea
Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea (Copyright 2026 The Associated Press. All rights reserved.)
  • South Korea's benchmark KOSPI stock index experienced its worst-ever sell-off on Wednesday, plunging over 12 per cent and a combined 18.4 per cent over the holiday-shortened week.
  • This historic drop wiped out 817.6 trillion won ($553.82 billion) in market value, with major chipmakers Samsung Electronics and SK Hynix each falling by approximately 20 per cent.
  • The local currency, the won, also weakened significantly, briefly surpassing 1,500 against the US dollar for the first time in 17 years.
  • The market's decline is attributed to the widening conflict in the Middle East and rising oil prices, prompting a re-evaluation of the AI boom, particularly given South Korea's heavy reliance on energy imports.
  • While South Korea has a large number of retail investors, analysts indicate that foreign outflows were the primary driver of the market's sharp decline.
In full

More bulletins

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in