KOSPI Crashes Below 8,000 Again — Chip Stocks Drag Korea's Benchmark Into Yet Another Sidecar 🍿

The KOSPI sank below 8,000 on July 2, falling 534.25 points, or 6.43%, to 7,769.16 by 9:51 a.m. local time. The Korea Exchange (KRX) responded by activating a sell-side sidecar within minutes of the opening bell, suspending program trading on KOSPI-listed shares for five minutes. The benchmark opened 4.46% lower and continued to decline through the morning session. A sell-side sidecar is triggered automatically once KOSPI 200 futures fall 5% or more for at least one minute.

Thursday's pause is the latest in a series of volatility-driven halts during 2026. The KOSPI has repeatedly triggered sidecars and circuit breakers this year, with the exchange logging close to 30 sidecar activations and five circuit breakers by late June. Both figures have already surpassed the prior annual record of 26 sidecars set during the 2008 financial crisis. Volatility in 2026 has also topped levels seen during that period.

Heavy selling in semiconductor stocks drove Thursday's move, with Samsung Electronics and SK Hynix extending losses. The two chipmakers together account for roughly half of the KOSPI's market capitalization and have repeatedly driven benchmark swings throughout the year. Their declines tracked a global chip stock selloff that began on Wall Street overnight, where the Nasdaq Composite slid 0.66% on Wednesday and the VanEck Semiconductor ETF lost 5.4%. Micron Technology and Sandisk each dropped more than 10% in the prior session.

The rout followed weeks of sharp reversals in the KOSPI's chip-driven rally, a rally that had pushed the index to record highs earlier in 2026. Semiconductor stocks continue to dominate the index, leaving it exposed to sector-specific volatility tied to global chip demand and US tech earnings.