South Korean Stocks Recover After Historic Tech Sell-Off

The South Korean benchmark Kospi index experienced extreme volatility between June 23 and June 25, 2026. On Tuesday, the market suffered its second-largest daily decline of the year, plummeting nearly 10 percent to close at 8,203.84. This rout, triggered by a global sell-off in AI and semiconductor stocks and a 2.21 percent drop in the Nasdaq, forced a 20-minute circuit breaker suspension as Samsung Electronics and SK Hynix shares dropped approximately 12 percent.

Samsung Electronics and SK Hynix led a recovery on Wednesday, June 24, as the Kospi rose 3.26 percent to close at 8,471.02. Gains were fueled by bargain hunting and optimism over a potential 90 trillion won share buyback by Samsung. Meanwhile, SK Hynix announced plans to raise 45.45 trillion won through a secondary listing on the Nasdaq. Despite the recovery, the Ministry of Finance and Economy noted that MSCI would maintain South Korea's emerging-market status due to currency convertibility issues.

Market momentum continued on June 25, with the Kospi jumping more than 5 percent at the open. This surge followed a strong quarterly earnings report from U.S.-based Micron Technology, which reinforced confidence in AI chip demand. SK Hynix shares rose over 10 percent in early trade, triggering a buy-side sidecar to halt program trading.