Explained: 3 reasons why South Korea's Kospi crashed up to 8% today

South Korea's Kospi plunged up to 8% on Thursday, falling to a low of 6,731 and now down over 28% from its June peak of 9,386. Three key drivers triggered the crash: the Bank of Korea raised its benchmark rate from 2.5% to 2.75%, marking the first hike in over three years; memory chip heavyweights SK Hynix and Samsung Electronics slumped as much as 12.5% and 10% respectively as the AI-led rally unwound; and South Korea's Financial Services Commission flagged stricter oversight of single-stock leveraged ETFs blamed for amplifying volatility tied to Samsung and SK Hynix, which together make up over half of the benchmark.