EL7.AI
StocksMedium•28 July 2026•
1 min read

South Korea's KOSPI Index Enters Bear Market After Sharp Crash

Key Facts

1The KOSPI index has crashed 34% in the last 25 trading days, exceeding the historical average bear market decline of 33.5%.
2The crash follows a massive 297% gain recorded by the index between April 2025 and June 2026.

Amid mounting concerns over global trade tensions and the sustainability of tech sector valuations, South Korea's KOSPI index has officially entered bear market territory. According to reports, the index crashed 34% within the last 25 trading days, a decline that exceeds the historical bear market average of 33.5%. This rapid correction follows a massive bull run where the index recorded gains of 297% between April 2025 and June 2026.

This swift collapse reflects severe technical pressure following one of the strongest rallies in the Korean market's history. The current pace of decline indicates significant technical damage, especially after breaching historical support levels. These movements coincide with investors weighing tariff risks and AI-related concerns that have dampened risk appetite across Asian markets.

Regarding economic data, South Korea recorded a GDP growth rate of 3.7% YoY (as of July 22, 2026), though these figures provided little support for the index. Given the lack of major upcoming catalysts in the current calendar, focus remains on the market's ability to absorb recent selling pressure.