Analysis: South Korean stocks plummet over 20% from peak, set to enter technical bear market

CoinFeed July 8 news, according to Jinshi reports, South Korean stocks extended losses, the KOSPI index fell more than 6% intraday, having dropped over 20% from its June peak, poised to enter a technical bear market. Samsung Electronics and SK Hynix fell about 7% and 5% respectively, as investors reassess the outlook for AI demand. South Korea has been the best-performing stock market globally this year, but its heavy reliance on two chipmakers leaves it particularly vulnerable when industry sentiment turns. Leveraged ETFs amplify moves in both directions, further exacerbating volatility. Despite Samsung Electronics posting a 19-fold surge in quarterly profit this week, chip stocks continued their decline, underscoring that traders are demanding more evidence to justify sky-high investments across the supply chain. Fidelity International portfolio manager Ian Samson said: 'The current increase in volatility is largely driven by fundamental uncertainty.'