Korea's Bear Market Hinges on AI Chip Demand, Not Earnings

South Korea's Kospi entered bear-market territory on July 7, down 20% from June highs, but the selloff tracks global AI-hardware pricing rather than Korean corporate health. Samsung and SK Hynix—the index's twin anchors—are levered to memory-chip contracts tied to infrastructure capex cycles. If AI spending stabilizes or the broader chip trade steadies, these firms have scale to lead recovery. If not, concentration risk means the Kospi has limited buffer against deeper declines.