South Korea's stock market just posted its steepest decline since the 2008 financial crisis. Here's what happened.
📊 The Numbers
July performance:
7 out of 10 stocks declined
Worst monthly performance since 2008
KOSPI triggered a circuit breaker during the month
🔍 What Drove the Decline
1. Chinese lithography breakthrough
Shanghai-based manufacturer started mass-producing DUV machines
ASML fell 6-8%
Samsung (-13.4%) and SK Hynix (-14.7%) led the KOSPI crash
2. AI spending concerns
Alphabet's $195B-$205B capex guidance raised doubts
Tech sector de-risking
3. Fed hawkishness
Rate hikes still on the table
Stronger dollar = pressure on emerging markets
4. Geopolitical tensions
US-Iran escalation
Oil above $90
📉 The Impact on Crypto
South Korea is a major crypto market
Retail trading volume has plunged 54.6% in H1
Upbit's dominance increased (67.4% market share)
Altcoin liquidity from Korea is thinning
🧠 What to Watch
KOSPI recovery — if it stabilizes, crypto sentiment could improve
Won strength — affects crypto trading in Korea
Crypto tax — coming Jan 2027 (22% on gains >$1,740)