Korean Stocks Plunge Over 4% in Catch-Up Drop; KOSPI Tests 6500-Point Defense

South Korean stocks suffered a sharp decline on Monday, July 20, 2026, as the market caught up with a global sell-off that had impacted other Asian bourses. The KOSPI index opened lower and plunged significantly, falling 305.37 points, or 4.47%, to test the 6515.24 level.

This downturn followed a turbulent "Black Friday" in global markets, where Taiwan's stock market crashed by 2953 points, marking its worst-ever performance. Japan's Nikkei index also experienced a significant drop, at one point falling over 4100 points before closing down 2694 points.

The weakness in artificial intelligence (AI) stocks, particularly SK Hynix, contributed to the market's woes. While SK Hynix's ADRs had shown a slight gain on Friday, the broader semiconductor sector continued to face selling pressure. U.S. stock markets also closed lower on Thursday, with the Nasdaq and Philadelphia Semiconductor Index experiencing notable declines.

Despite the initial sharp fall, the KOSPI showed signs of a rebound later in the morning. Following a recovery in SK Hynix's ADRs, the South Korean index rallied, briefly touching 6809 points and moving closer to the flat line. However, the market remains sensitive to the ongoing volatility in global tech stocks.