Global semiconductor stocks are moving in tandem, but the shock to South Korea’s stock market is particularly severe. Taiwan and Japan, which also have high semiconductor weightings, fell as well, but not by as much as the KOSPI. On the 14th, the Korea Exchange said the previous day’s KOSPI closed at 6035.35, down 5.46% from the previous trading day..

South Korea's stock market fluctuated sharply alongside global semiconductor stocks. The KOSPI fell 5.46% from the previous day, closing at 6035.35. Taiwan's TAIEX fell 1.95% and Japan's Nikkei 225 fell 1.82%, leaving the KOSPI's decline greater than the falls in both markets.

Samsung Electronics and SK hynix, the leading semiconductor stocks, fell sharply by 7.39% and 10.09%, respectively, following news that China's CXMT would launch server semiconductors within the year. This was seen as a factor behind the KOSPI's relative underperformance.

The market's weakness is viewed as the result of several factors converging: semiconductor companies account for approximately half of the KOSPI's total market capitalization, foreign selling pressure has intensified, and the end of share buybacks has weakened buying capacity. As of the 12th, the combined market capitalization of Samsung Electronics and SK hynix accounted for 50.06% of the KOSPI.

Experts expect full-scale earnings announcements to continue through the end of this month, and say that foreign investor flows, U.S. interest-rate trends and semiconductor earnings will determine the market's future direction. With foreign selling continuing, a recovery in share prices may take time.