Kospi enters bear market! What South Korea’s finance minister said after 20% crash

South Korea's Kospi index entered a technical bear market after falling more than 20 percent from its June peak of 9,114.55, closing at around 7,247 on Wednesday with a 6 percent single-day drop. The selloff was driven by semiconductor heavyweights Samsung Electronics and SK Hynix, foreign investor profit-taking of 471.7 billion won, and growing concerns over AI spending sustainability that also dragged US tech stocks including Intel, Micron, and AMD lower. Despite the correction, Kospi remains 2026's top-performing major index with gains exceeding 68 percent year-to-date, and Goldman Sachs retains a positive outlook citing rotation into broader AI beneficiaries and industrials.