South Korea's KOSPI index enters bear market, falling over 20% from recent high

South Korea's benchmark KOSPI index closed 5.35% lower at 7,246.79 on July 8, marking its lowest close since May 20 and pushing it into a bear market, more than 20% below its June 22 record. The selloff was primarily driven by major AI-linked chip stocks like Samsung Electronics and SK Hynix, which fell 6.3% and 5.7% respectively, following a drop in US semiconductor stocks. Concerns over a slowdown in memory price growth and uncertainty about peak earnings, despite strong guidance from Samsung, contributed to the decline. The volatility triggered a "sidecar" trading curb on July 8, temporarily halting algorithmic trading.