KOSPI Plunges 7% as Global Chipmaker Selloff Intensifies: Key Market Updates
South Korea’s benchmark KOSPI index experienced a dramatic 7% drop on Tuesday, driven by a deepening selloff in global chipmaker stocks. The decline was led by SK Hynix, whose shares fell sharply, significantly impacting the broader market. This downturn reflects heightened investor caution amid volatile trading conditions, with the index now firmly in bear market territory. The selloff underscores the vulnerability of South Korea’s export-driven economy to global semiconductor demand fluctuations.
Despite the sharp decline, the KOSPI later staged a partial recovery, recouping some losses. However, analysts note that the index remains in a bear market, characterized by wild swings and persistent uncertainty. The recovery was attributed to bargain hunting and short-term positioning, but overall sentiment remains fragile. Market participants are closely watching U.S. economic data and Federal Reserve policy signals for further direction.
In the semiconductor sector, a key distinction has emerged: Unlike extreme ultraviolet (EUV) lithography, which remains at the prototype stage, deep ultraviolet (DUV) technology has entered the commercialization phase. This development could influence future investment flows, as DUV-based chipmaking gains traction. However, near-term pressures from global trade tensions and slowing demand continue to weigh on chip stocks.
Disclaimer: This content is authored by an external agency. Select market data provided by ICE Data Services and FactSet. Copyright © 2026 FactSet Research Systems Inc. Investors should exercise caution given the current market volatility and consult professional advisors before making decisions.
Shimanta Das 
