
South Korean equities crash as AI chip rally collapses amid global inflation fears
South Korea's Kospi index has plummeted 24% in the second half of 2026, reversing its status as the world's top-performing market. The sharp decline is driven by a massive sell-off in technology stocks, particularly memory-chip giants Samsung Electronics and SK Hynix, as foreign investors exit the market. The retreat is exacerbated by global inflation concerns, rising oil prices due to Middle East tensions, and a rotation of capital toward broader AI supply chains in Taiwan.











