Korean stock market plunges 12% in historic one-day crash

South Korea's KOSPI index experienced its largest single-day decline on record, plunging 12% and erasing approximately $625 billion in market value on Wednesday. Trading was halted for 20 minutes after circuit breakers were triggered at an 8% decline. Major technology stocks like Samsung Electronics and SK Hynix led the losses, contributing to the index briefly entering bear market territory after falling over 20% from its recent peak. The selloff was intensified by retail investors liquidating leveraged positions following margin calls, as outstanding margin debt had reached 32.67 trillion won ($22.4 billion) by late January 2026. The immediate trigger was rising geopolitical tensions following military strikes by the U.S. and Israel against Iranian targets, which sharply increased crude oil prices. South Korea, being heavily reliant on energy imports, is highly sensitive to such price spikes, threatening corporate margins and consumer spending. This collapse followed a period where foreign investors had already been selling heavily, recording the largest monthly outflow of 21.14 trillion won in February 2026.

(Source：Crypto Briefing)