KOSPI Plunges 5.8%, Trading Halted on Memory Chip Fears

Key Facts

1South Korea's Kospi tumbled as much as 8% Friday before closing down 5.8%.

In a stark reminder of investor jitters in the semiconductor sector, South Korea's KOSPI index suffered a sharp collapse on Friday. According to reports, the index tumbled as much as 8% during the session before closing down 5.8%, marking its biggest single-day drop in months. The violent selloff triggered a trading halt mechanism to calm the market.

The rout was fueled by heavy selling in memory chip heavyweights Samsung Electronics and SK Hynix, following fears of a downturn in global chip demand. The negative sentiment appears to have been amplified by cautious guidance from US peer Micron Technology. The memory chip sector has been under pressure from oversupply and falling prices in recent quarters.

In London, Samsung Electronics ADR (SMSD.L) closed at 3600 on June 25, 2026, having hit a low of 3570 during the session, compared to a high of 3805. Investors are now watching for any official statements from South Korean regulators or further updates from chipmakers. With no immediate catalysts, the focus remains on semiconductor industry guidance to gauge the broader impact of the market turmoil.