WhyItDropped

KOSPI · July 2, 2026

Early July, as the decline set in

-7.89%

single-day change vs previous close

Part of a longer stretch

The AI bubble argument hits the KOSPI

early in it · 2026-06-22 → 2026-07-30, -38.63% over the whole period

What happened that day?

  • The KOSPI fell 7.89% on the day
  • The decline that began in late June was carrying into July and setting in. There was no single trigger that day; it was a stretch that fell daily
  • In such a phase people sell from circumstance, not judgement. Anyone who bought with borrowed money is forced to sell as prices drop
  • Leveraged products tied to single stocks had grown large in Korea over the first half of 2026, and that structure fed the decline
  • Earnings had not broken. The chip cycle was intact, and what the market was waiting for was the July reporting season
  • Results from large US technology firms at the end of July did in fact turn the tide

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.