Korean Stock Market Plunges 10% Amid Global Tech Sell-Off
South Korea's KOSPI index plummeted by over 10% overnight, marking a significant drop that has rippled across global technology and momentum stocks. Memory chip leaders Samsung Electronics and SK Hynix fell more than 13%, dragging down related U.S.-listed ETFs like the VanEck Semiconductor ETF (SMH) and Micron Technology (MU). Despite the selloff, MU provided Q4 revenue guidance of $50 billion, indicating continued demand for AI memory. The KOSPI has now dropped nearly 34% from its recent peak in under a month but remains up 43% year-to-date. The sell-off follows months of stretched valuations and leveraged investing in momentum stocks, particularly among Korean investors. While the VIX volatility index suggests no broad market panic yet, sector-specific declines are evident with Nasdaq futures down nearly 1%. The unwind could continue to pressure ETFs like SMH and MTUM if broader risk aversion persists.
Tickers: $MTUM $MU $SKHYV $SMH
Topics: global markets KOSPI memory stocks Micron Technology Samsung