Korean equities just delivered one of the most brutal drawdowns outside a full-blown crisis.
The KOSPI is down 33% from its June peak — touched 39% at the lows last week. That's the deepest pullback since 2008.
What's driving it? Two names. $SK Hynix and $Samsung together make up over half the index. Hynix is off 52% from the top. Samsung down 38%. When your benchmark is that top-heavy, concentration risk isn't theoretical — it's existential.
The leverage unwind has been even uglier. 2x ETFs tied to Hynix? Down over 80%. The 3x long Korea ETF $KORU? Off 73% since June.
This isn't just a correction. It's a full reset in valuation, sentiment, and positioning. Korea's bear market is now in the record books — and a sharp reminder of what happens when cyclical exposure, leverage, and momentum all reverse at once.
The KOSPI is down 33% from its June peak — touched 39% at the lows last week. That's the deepest pullback since 2008.
What's driving it? Two names. $SK Hynix and $Samsung together make up over half the index. Hynix is off 52% from the top. Samsung down 38%. When your benchmark is that top-heavy, concentration risk isn't theoretical — it's existential.
The leverage unwind has been even uglier. 2x ETFs tied to Hynix? Down over 80%. The 3x long Korea ETF $KORU? Off 73% since June.
This isn't just a correction. It's a full reset in valuation, sentiment, and positioning. Korea's bear market is now in the record books — and a sharp reminder of what happens when cyclical exposure, leverage, and momentum all reverse at once.