South Korea's benchmark KOSPI index has entered a bear market after an extraordinary AI-driven rally pushed it to record highs, underscoring the risks of a market dominated by semiconductor stocks and leveraged retail trading, according to Reuters.
The KOSPI has fallen about 25% from its record closing high of 9,114.55 reached in late June and was trading below the 7,000 mark on Tuesday, officially placing the benchmark in bear market territory. Despite the sharp correction, the index remains the world's best-performing major equity market this year, posting gains of around 60%, far ahead of the roughly 10% advance in MSCI's broad global equity index.
