South Korea’s KOSPI index plunged nearly 11% on July 28, 2026, as a global chip selloff hit Samsung Electronics and SK Hynix. The benchmark dropped below 6,000 during the session before closing at 6,023.66, its lowest level since April.
The KOSPI fell 732.09 points, or 10.84%, in one of its sharpest daily drops this year. Trading was paused twice after losses crossed the 8% threshold, triggering South Korea’s circuit breaker mechanism.
The selloff wiped roughly $1.7 trillion in market value from the index’s peak. The secondary Kosdaq index also fell 7.72%, showing broader pressure across South Korean technology shares.
Source: X
Samsung Electronics dropped 13.4%, while SK Hynix tumbled 14.7%. Both companies hold large weights in the KOSPI, making their declines a major driver of the index drop.
SK Hynix’s U.S.-listed shares also came under pressure before Tuesday’s trading. The stock fell below its $149 listing price and later traded near $139.45, down 11.89% over 24 hours.
Investor concern increased around the cost and durability of the artificial intelligence investment cycle. Chipmakers have rallied sharply in recent months as demand for AI hardware lifted earnings expectations and valuations.
The latest decline followed losses in U.S. chip stocks, where Nvidia fell 5%, AMD dropped 5.2%, and Micron Technology lost 2.3% during Monday’s session.
Pressure also came from concerns about Chinese competition in memory chips and chipmaking equipment. Chinese memory chipmaker CXMT jumped 466% in its Shanghai trading debut on Monday before falling 4% on Tuesday.
Reports that China has started mass production of domestic deep ultraviolet chipmaking tools added to investor caution. The equipment helps print tiny circuit patterns onto silicon wafers, a core part of chip production.
Morningstar equity analyst Jing Jie Yu said investors were likely unsettled by China’s chip equipment progress. He said the market appeared worried that China could challenge global chipmaking and equipment leaders.
Yu also said, “The sell-off today is largely a knee-jerk reaction and overdone.” He added that leading global chipmakers were unlikely to face a meaningful threat to their dominant position.
The chip rout spread across Asia as technology-heavy indexes fell. Japan’s Nikkei 225 dropped 4% to 62,364.92, while Taiwan’s Taiex slipped 4.7%.
Shares of Taiwan Semiconductor Manufacturing Co. fell 3%, adding pressure to regional chip sentiment. Hong Kong’s Hang Seng gained 0.4%, while the Shanghai Composite fell 1.2%.
Australia’s S&P/ASX 200 rose 0.6%, while India’s Sensex slipped 0.1%. European shares opened higher, with Germany’s DAX, France’s CAC 40, and Britain’s FTSE 100 all gaining around 0.5% to 0.6%.
U.S. futures were mixed after the Asian selloff. Futures tied to the S&P 500 slipped 0.1%, while Dow Jones Industrial Average futures rose 0.3%.
Oil prices extended losses as the U.S. and Iran avoided fresh strikes. Brent crude fell 2.2% to $84.03 per barrel, while U.S. crude dropped 1.7% to $81.20.
The post South Korea’s KOSPI Plunges 11% as Global Chip Selloff Hits Samsung and SK Hynix appeared first on CoinCentral.
