South Korea's Kospi fell 10.8% as chip stocks were hit hard.
Why it matters: A sharp semiconductor selloff in South Korea can ripple through Asia, U.S. futures and AI supply-chain sentiment. Samsung Electronics and SK Hynix are key bellwethers for the global memory-chip cycle.
- The Kospi closed 10.8% lower at 6,023.66 on Tuesday, July 28, 2026.
- Samsung Electronics fell 13.4% and SK Hynix dropped 14.7% in the selloff.
- The Korea Exchange triggered a marketwide circuit breaker at about 10:14 a.m. after the index fell more than 8%.
- AP said U.S. futures were mixed and most other Asian markets declined as the rout spread.
South Korea's Kospi plunged nearly 11% on Tuesday, closing down 10.8% at 6,023.66 after heavy selling in chipmaking stocks, according to AP.
The biggest blows landed on the market's semiconductor heavyweights. Samsung Electronics fell 13.4% and SK Hynix fell 14.7% as trading was temporarily halted at times and the index touched its lowest level since April.
The Korea Exchange triggered a marketwide circuit breaker at around 10:14 a.m. on July 28, 2026, after the KOSPI fell more than 8% from the previous close, Yonhap reported.
Reuters reported that investors were dumping AI-related bets amid concerns over financing risks tied to AI infrastructure spending and intensifying competition from China. A separate Reuters report said Chinese memory-chip maker CXMT's strong stock-market debut added to worries about competition in the global memory industry, adding another pressure point for Korean chip names.
AP said the selloff was not contained to Seoul. Most other Asian markets declined, and U.S. futures were mixed as investors reassessed the chip cycle and broader AI trade.
By the numbers
- 10.8% - Kospi's closing drop on Tuesday, July 28, 2026
- 13.4% - Samsung Electronics' decline in the selloff
- 14.7% - SK Hynix's decline in the selloff
Yes, but: The precise mix of drivers - AI-bubble fears, financing concerns and China competition - is still a market interpretation, not an official finding.