South Korea's KOSPI Falls 28.5% in One Month, Recovering from 2008 Financial Crisis Lows

According to Yugin Securities, South Korea's KOSPI index fell 28.5% from its June 21 peak of 9,114 points to 6,516 points on July 20, marking its steepest decline since the 2008 global financial crisis. SK Hynix, a major index heavyweight, dropped 39.6% over the same period.

Analyst Heo Jae-hwan from Yugin Securities stated on July 27 that a V-shaped recovery similar to the COVID-19 pandemic is unlikely. He cited the Bank of Korea's potential for additional rate hikes and deteriorating cash flows at major tech giants—including Alphabet's operating margin contraction from 36.6% to 34.2% and its first-ever negative free cash flow—as key headwinds to recovery.