South Korea's Stock Slump Follows AI Chip Prices, Not Company Earnings

The Kospi fell 20% into bear territory since June, but the decline tracks global memory-chip pricing, not South Korea's corporate health. Samsung and SK Hynix anchor the index and profit from infrastructure spending tied to AI buildouts. If chip demand steadies, both firms have scale to lead recovery. Concentration risk means the index lacks buffer for deeper declines if demand falters.