The South Korean KOSPI index dropped 6.37% [1] to 6,820 points [1] on Thursday, breaking below the 7,000-point threshold.

This decline highlights the extreme sensitivity of the South Korean economy to global semiconductor trends, as the country's largest companies are heavily concentrated in chip manufacturing.

The market collapse was led by semiconductor giants Samsung Electronics and SK Hynix. Samsung Electronics shares fell to the mid-250,000 KRW range [1], representing an approximately 8% drop [1]. SK Hynix closed at 1.84 million KRW [1], a decline of roughly 11% [1].

Selling pressure began before the domestic market opened. SK Hynix ADRs fell about 9% overnight [1]. The volatility continued into the regular trading session, where the 19th sell-side “sidecar” mechanism of the year was triggered within 10 minutes of the opening bell [1].

Analysts said the crash was due to weakness in U.S. semiconductor stocks, which pressured Korean shares and sparked heavy selling. The downturn occurred on the day immediately preceding a holiday weekend [1].

"The KOSPI index plummeted 6.37% and closed at 6,820 points, falling below the 7,000 mark," said reporter Jung Hyun-woo of YTN News. Jung said that Samsung Electronics, the market leader, was pushed down to the mid-250,000 won range, while SK Hynix fell to 1.84 million won.

“The KOSPI index dropped 6.37% to 6,820 points, breaking below the 7,000-point threshold.”

The breach of the 7,000-point level and the rapid activation of the sidecar mechanism indicate a high level of market instability. Because the KOSPI is heavily weighted toward semiconductor firms, the index acts as a proxy for global AI and chip demand. The correlation between U.S. tech volatility and the Korean market suggests that domestic investors are reacting sharply to external signals, increasing the risk of systemic volatility during global tech corrections.