South Korea's Kospi Slides 20% in July as Banks See Semiconductor Selloff Nearing End
Updated
Updated · CNBC · Jul 21
South Korea's Kospi Slides 20% in July as Banks See Semiconductor Selloff Nearing End
3 articles · Updated · CNBC · Jul 21
Summary
A roughly 20% July drop has put South Korea's Kospi on track for its worst monthly loss since 2008, after a profit-taking and deleveraging wave hit semiconductor-linked shares.
JPMorgan said the unwind in single-stock leveraged ETFs is about three-fourths complete and kept an overweight view on Korea, signaling the pullback may be close to ending.
TS Lombard called the slump a semiconductor deleveraging event rather than a broader bust, while Bank of America said selling pressure may be fading after broader stocks underperformed large caps for the first time since March.
The retreat has been painful for retail investors in leveraged ETFs, but the Kospi is still up about 60% in 2026 after gaining more than 75% last year.
Investors watch Korea closely because its heavy exposure to memory-chip stocks can make the market an early signal for U.S. equities tied to the AI infrastructure boom.