South Korean stocks have dropped for a second consecutive session, with Seoul's equity market losing about $2.18 trillion in value, according to verified market data. The decline, which continued on Wednesday, July 29, 2026, has put the market on track for its steepest monthly drop on record, as the artificial intelligence-driven boom that had lifted tech shares begins to fade.
The Korea Composite Stock Price Index (KOSPI) fell sharply, driven by losses in major technology and semiconductor stocks, including Samsung Electronics and SK Hynix. Analysts attribute the sell-off to profit-taking and concerns over slowing demand for AI-related hardware and software, following a prolonged rally that had pushed valuations to historic highs.
Market observers note that the correction reflects a broader reassessment of AI sector growth prospects, with investors shifting focus to more defensive sectors. The Bank of Korea has not intervened directly, but officials are monitoring the volatility closely. The monthly decline is expected to be the largest since the 2008 financial crisis, though exact percentage figures were not immediately confirmed.
