KOSPI plunges over 8 percent as US jobs data sparks tech selloff | Ukraine news

Seoul, June 8 – South Korea’s stock market experienced a sharp drop: the main KOSPI index fell more than 8% on Monday, triggering the daily circuit breakers after strong U.S. employment data pushed expectations for a Fed rate hike and sparked a sell-off in the tech sector, which had previously supported the AI market rally.

The KOSPI fell 8.3% and closed at 7,484.41, marking the largest one-day decline since March 4. The index is now 15% below its peak of 8,801.49, reached on June 2.

Key Market Events and Regulatory Response

After the market opened, trading restrictions were imposed: trading was halted for 20 minutes, the third such instance this year and the ninth in history.

The won’s exchange rate also reflected the mood shift: the dollar strengthened by more than 1% to around 1,533.7 won per dollar, retreating from a record 1,615.0 won hit on Friday after an emergency government meeting and pledges of tough action against speculation.

Foreign investors remained net sellers on the Korean market, selling shares worth about 355 billion won, continuing a run of 21 consecutive selling sessions.

Among the leaders of the drop were the industry flagships: Samsung Electronics fell 10.2%, and SK Hynix fell 7.7%. Alongside this, Nvidia, the well-known chipmaker led by Jensen Huang, acknowledged that SK Hynix remains its “largest partner” as it reviews new deals during a visit to South Korea.

These two South Korean giants had made a significant contribution to the earlier index gains as their market capitalization rose by over 150% and over 200% respectively this year; together they now account for more than half of the index’s overall turnover and have propelled it to a status of companies with a market capitalization around $1 trillion.

«The unexpected growth in employment in the U.S. triggered a rise in bond yields and gave a reason for a correction in the overheated market amid rising pressure from the surge in expensive semiconductor stocks.»

– Han Ji-young

With the view that tech wars and volatility will remain in focus, investors anticipated further market dynamics. Markets also reacted to the rise in the yields on ten-year Treasuries: yields climbed to 4.366%, the highest level since October 2023.

During a press conference marking his first year in office, President Lee Jae-Myung said that the market remains “undervalued” and that the current exchange-rate path is temporary and anomalous, attributing the won’s depreciation to foreign investors selling portfolios for rebalancing.

In the large-cap segment among market interests, Naver rose 9.2% on the Nvidia deal, while Hyundai Motor fell 8.7% despite an agreement with the American chipmaker to expand the partnership.

Monday’s losses were felt by both local and international participants: foreigners ended the day with net selling of 355 billion won, continuing the week’s pressure.

Despite Monday’s pullback, the KOSPI remains well above the start of the year: the 2026 year-to-date gain stands at about 78%, while in 2025 the index jumped 76% – the best performance among major global markets.

Outlook and Conclusions

Analysts note that after the sharp drop amid broad-based accelerated trading and expectations for Fed policy, volatility may stay high, but a serious proximity to repeated declines is unlikely due to easing pressure on valuations and earnings resilience in key sectors, particularly semiconductors.

On balance, experts expect that dynamics in Asian markets will remain sensitive to U.S. news and regulatory signals, but global tech companies could support a recovery in the coming days if no new pressures emerge.

Despite today’s drop, the overall trend in the Korean market remains positive, and investors continue to monitor changes in the global technology sector and regulatory actions in the United States.