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Nikkei Asia
South Korea's KOSPI plunges 11% on China chip competition fears
The South Korean KOSPI index experienced an 11% drop as fears mounted over intensified competition from Chinese chip manufacturers. This decline is part of a broader sell-off that affected Asian markets following substantial losses on Wall Street, driven by rising costs associated with tech investments. Investors are increasingly wary of the financial implications of competing against China's expanding semiconductor industry, which is perceived to pose a serious threat to established players in the region.
MonitorConfidence: HighShort term horizon
Published 28 Jul 2026, 16:20 UTC1 min read
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Summary
TL;DR
- KOSPI index fell by 11% on July 28.
- Significant declines observed in Japanese and Taiwanese tech stocks.
- Market concerns attributed to increased competition from Chinese chipmakers.
- Sell-off in tech shares began in the US markets.
- Investor sentiment deteriorating across major Asian markets.
Interesting facts
- The KOSPI drop is the largest in recent memory, reflecting deep-seated investor concerns.
- South Korean tech firms' vulnerabilities are highlighted against the backdrop of China's aggressive advancement.