KOSPI Drops 5% on AI Leverage Fears, Down 28% From June Peak
2026-07-20 12:29

Woofun AI reports that South Korea's KOSPI index declined 5%, driven by investor liquidation of artificial intelligence trade positions. The index continues a four-week losing streak, falling 28% from its record high on June 22. This sell-off reflects growing anxiety regarding the market's reliance on leveraged bets on AI chipmakers. Citigroup analysts downgraded South Korea's rating from overweight to neutral due to volatility, while maintaining a 10,000-point target for the KOSPI index.

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