What's happening in South Korea's stock market has truly been one of the most incredible things to witness in decades. South Korea's KOSPI went from barely being in the top 15 largest stock markets to 6th in a matter of months, worth $5 trillion. 40 days later and nearly half of the country's market cap has been erased with an "emergency meeting" being convened by regulators. The next few months will be for the history books. Our outlook is summarized below.
The Kobeissi Letter
@KobeissiLetter
Jul 29
Absolutely incredible. In an unprecedented move, South Korea's stock market just collapsed -44% in 40 days, erasing -$2 trillion in market cap. Now, South Korea's finance ministry has announced plans to "stabilize" the market. What is happening? Let us explain. (a thread)
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Replying to @TKL_Adam @KobeissiLetter
Don’t worry guys that’s won’t happen to the s&p 500 the people in charge in America are too “smart”

Jul 29, 2026 · 2:46 PM UTC

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Replying to @Dickjamesbrown @TKL_Adam @KobeissiLetter
International investors may sell Korean assets and rotate into more liquid U.S. tech leaders. But this could also signal that global capital is reducing exposure to AI and semiconductor risk across the board, which means the U.S. market may not remain insulated. The S&P 500 should stay relatively stable, but the impact on specific sectors could persist for some time.
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