South Korea’s benchmark index fell 5.35% Wednesday as AI-driven chip stocks led declines, marking its first bear market since 2022.
South Korea’s KOSPI index closed 5.35% lower at 7,246.79, entering a bear market after a 20% decline from its June record high. The selloff was driven by sharp losses in AI-related chip stocks, extending recent downward pressure on tech-heavy markets.
The index last traded at these levels in late 2022, following a broader global equity retreat. Prior to Wednesday’s drop, the KOSPI had underperformed regional peers amid weak domestic demand and export concerns, particularly in semiconductors.
No immediate market reaction data was provided, but the decline reflects growing investor caution over tech sector valuations and macroeconomic risks.