28 Jul 2026

SOUTH KOREA'S STOCK MARKET JUST HIT THE CIRCUIT BREAKER... AGAIN.

The KOSPI plunged 8%, triggering a market-wide trading halt for the 9th time this year. Roughly ₩500 trillion in market value disappeared in a single session. Three major shocks hit at once: • China's DUV chip breakthrough is raising concerns that South Korea's long-held memory chip advantage could come under pressure. • A US semiconductor selloff, driven by fresh questions around Nvidia's financing structure, spilled into Asia. Samsung and SK Hynix both dropped more than 12–14%. • Iran denied reports of peace talks with the US, reigniting geopolitical fears and pushing investors into risk-off mode. The impact is amplified because Samsung and SK Hynix account for more than half of the KOSPI's market capitalisation. When the chip giants fall, the entire index follows. Adding fuel to the selloff, record retail leverage is forcing liquidations, accelerating the decline and turning a sharp correction into a full-scale market rout. Source: The Macro Paper

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