KOSPI Plunges 4.46% on July 20, Down 28% in One Month Amid AI Shock

According to Seoul Stock Exchange, KOSPI plunged 4.46% (304.33 points) to close at 6,516.27 on July 20, marking another sharp decline as Chinese AI startup MoonShot's release of its Kimi K3 model triggered market turmoil. The index fell 28.02% over the past month, significantly underperforming global peers—U.S. S&P 500 dropped just 0.57%, Taiwan's index fell 8.17%, and Japan's Nikkei 225 declined 9.98%.

Semiconductor stocks led the selloff. Samsung Electronics slid 4.31% to 244,000 won, marking its lowest closing price in 11 weeks. SK Hynix fell 4.23% to 1.764 million won. Analysts attributed the outsized decline to AI investment concerns weighing on South Korea's chip-heavy economy, compounded by liquidity shocks from leveraged products among retail investors.