KOSPI Falls 1,500 Points in Two Weeks; Banking Stocks Rise 11.38% as Defensive Haven

According to Korea Exchange, KOSPI dropped approximately 1,500 points to 6,856.83 on July 15, down from 8,303.41 on July 1, with semiconductor stocks accounting for the steepest declines. The KRX IT and semiconductor indices fell 26.96% and 22.80%, respectively. In contrast, the KRX banking index surged 11.38%, the only sector posting double-digit gains. KB Financial's market capitalization reached 63.84 trillion Korean won, securing the 8th position on the KOSPI.

The banking sector strength mirrors global trends. Japan's Mitsubishi UFJ Financial Group climbed to Japan's market-cap leader on July 13, the first financial institution to hold the top position since 1986. Analysts attributed the gains to expectations of interest rate hikes by central banks, improved earnings, and expanding shareholder returns. South Korea's major financial holding companies increased dividend payout ratios from the 20% range in 2020 to 40-50% last year, with further buybacks anticipated this second half.