The stock market crashed! South Korea: If volatility intensifies, it will actively launch a 100 trillion won market plan

# Wan Xiaoting

Source: Wall Street CN

More updates to follow.

The chairman of the Financial Services Commission of South Korea said at a meeting with market experts that South Korea is closely monitoring the stock market. If necessary, South Korea will actively activate a 100-trillion-won market stabilization program.

South Korean stocks closed sharply lower for a second consecutive day. The KOSPI plunged more than 12%, Hyundai Motor dropped nearly 16%, and Samsung Electronics fell nearly 12%.

As noted in a Wall Street CN report, South Korea has become the epicenter of this turmoil. According to Christopher Forbes, Head of Asia and Middle East Operations at CMC Markets, after the joint U.S.-Israeli action effectively blocked the Strait of Hormuz, market buying nearly evaporated, order books dried up instantly, and foreign investors pulled out more than $7 billion in just two trading days.

South Korea had been one of the world’s best-performing markets this year, driven by the AI and memory chip cycles, with a peak gain of nearly 50%. Positions were highly concentrated in large-cap tech heavyweights such as Samsung Electronics and SK Hynix.

Lorraine Tan, Director of Asian Equity Research at Morningstar, stated:

“The decline in the KOSPI can largely be attributed to the high concentration of individual stocks in the Korean market.”

Data shows that memory giants Samsung and SK Hynix together account for nearly 50% of the index weight. Both stocks plummeted 10%. She added:

“The sell-off is partly due to profit-taking amid rising risk aversion, and also signals growing market concerns that AI data center deployment may slow down.”

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