South Korea's benchmark KOSPI index plunged more than 10% on July 28, 2026, marking one of its worst single-day drops in recent years. The selloff was led by major technology stocks, including Samsung Electronics and SK Hynix, as investor sentiment soured over the outlook for artificial intelligence investments.
The decline was triggered by growing concerns that the massive capital expenditure on AI infrastructure may not yield expected returns, echoing similar selloffs in global markets. Samsung Electronics fell over 12%, while SK Hynix dropped nearly 15%, dragging the broader index down.
Market analysts attributed the crash to a combination of factors, including disappointing earnings reports from key tech firms and a shift in investor focus toward more defensive sectors. The KOSPI closed at 2,345.67, down from 2,607.89 the previous session.
The South Korean won also weakened against the US dollar, falling 1.5% to 1,320 won per dollar, as foreign investors pulled out of Korean equities. The government announced it would monitor the situation closely but did not signal immediate intervention.
