World's best-performing market Kospi index enters bear market: Can South Korea's selloff hit Indian stock markets?

South Korea's Kospi index entered bear market territory, falling more than 31% from its June peak of 9,386 to 6,448.86, driven by a sharp selloff in heavyweight semiconductor stocks Samsung Electronics and SK Hynix. Despite the correction, the index remains up over 50% year-to-date in 2026. Analysts warn that while Indian markets may see short-term FII selling due to global risk aversion, strong DII inflows should provide a cushion, and Indian IT stocks could face mild pressure if the Korean tech pullback signals broader concerns about global AI spending.