Archive · 31 Jul 2026
South Korea Stock Crash Leaves Investors Devastated
In July 2026, the South Korean stock market fell more than 30% from its June high, losing over $2 trillion in value.
Many people who had borrowed money or sold savings to buy stocks lost most of their money, especially on risky ETFs.
The crash happened after the market had risen a lot because of excitement about artificial intelligence.
The government apologized, met with investors, and put new rules on trading.
Even though the market is still higher than it was at the start of the year, it is far below its record high.
South Korean stock market plunged over 30% from June peak, wiping more than $2.18 trillion in market value.
Retail investors, many of whom borrowed or liquidated savings, suffered losses of 70‑80% on leveraged ETFs like SK Hynix.
The crash followed a 122% rise in KOSPI during early 2026, driven by global AI enthusiasm and speculative buying.
The government has issued apologies, convened emergency meetings, and imposed new regulatory caps amid protests and condolence flowers at parliament.
Despite the downturn, KOSPI remains about 50% higher year‑to‑date, with a brief rebound after Microsoft’s strong earnings.
- Who
- South Korean investors, government officials, and tech companies
- What
- A severe stock market crash wiping billions in value
- When
- Late July 2026, after a June 2026 peak
- Where
- South Korea, KOSPI index
- Why
- Speculative buying, leveraged ETFs, and a reversal of AI‑driven gains
- Market Index
- KOSPI
- Peak Value
- 9,386 (June 2026)
- Current Drop
- 30%+ from peak
- Total Market Value Lost
- $2.18 trillion
- Date of Crash
- Late July 2026
- Government Response
- Apologies, emergency meetings, regulatory caps