South Korea’s benchmark index drops 30% from June highs amid chipmaker weakness and leveraged trading unwinds.
South Korea’s KOSPI index opened 5% lower, breaching July lows and extending a 30% decline from its June 18 peak of 9106. The selloff follows a six-week drawdown after a near-quadrupling rally from 2300 since April 2025, driven by extreme volatility in leveraged trading.
The index remains relatively inexpensive on a valuation basis, but momentum and leverage have amplified losses. Technical levels to watch include 5840, the 50% retracement of the April 2025 rally, with 5000 emerging as a potential downside target after the February interim peak of 6400 failed to hold.
Chipmakers, a key driver of the prior bull market, are leading the decline as investor sentiment sours. The rapid unwind reflects broader concerns over speculative excess in high-beta markets.