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CNBC
Why the world’s best-performing stock market this year fell into bear territory
The Kospi index of South Korea, once the leading global stock market performer, has recently fallen into bear territory, dropping more than 20% from its record high due to heightened skepticism surrounding AI investments. Major chipmakers, particularly Samsung Electronics and SK Hynix, play a significant role in this decline. Despite their strong earnings reports, concerns around AI spending have driven investor caution as profit-taking ensues. Analysts argue that while the recent correction reflects increased volatility, the fundamental outlook for these companies and the Kospi remains positive, pointing to a 'healthy reset' rather than a shift in long-term growth expectations.
MonitorConfidence: MediumShort term horizon
Published 9 Jul 2026, 08:55 UTC3 min read
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Summary
TL;DR
- Kospi index fell over 20% from June peak.
- Investor skepticism towards AI stocks has intensified.
- Samsung and SK Hynix dominate Kospi's market weight.
- The current correction seen as a valuation adjustment.
- Memory prices expected to rise further this year.
Interesting facts
- The Kospi has gained over 70% this year despite recent volatility.
- Volatility index surged over 200% in 2026.
- Rising memory prices indicate strong demand despite market concerns.