KOSPI Plunges 25.42% in July, Falls Below 7,000 as Brokers Predict Bottom Near 6,000

According to Digital Daily, South Korea's KOSPI index fell 2,191.12 points, or 25.42%, from July 1–21, 2026, driven by Middle East tensions and semiconductor sector concerns. Individual stocks declined more sharply, with SK Hynix down 36.3% and Samsung Electronics down 28.5% over the same period. Margin trading balances hit a three-month low of 32.75 trillion Korean won on July 23.

Multiple brokerages including NH Investment & Securities, Kiwoom Securities, Morgan Stanley, and JPMorgan predict KOSPI will find support near the 6,000 level. NH Investment noted the 12-month forward price-to-book ratio of 1.3–1.4x remains fair value, equivalent to 5,800–6,250 on the index, while Kiwoom cited the 12-month forward P/E ratio of 5.8x—near 2008 financial crisis lows—as evidence of overshooting.