South Korea's benchmark KOSPI index fell 23% in July 2026, its steepest monthly decline on record. The sell-off erased 250 trillion won in market value and triggered seven circuit breakers, halting trading multiple times throughout the month.
The scale of the decline
The 23% drop surpasses any previous monthly loss for the KOSPI, which tracks the Korea Composite Stock Price Index. The index's performance in July marks a sharp reversal from earlier gains, though the exact causes of the sell-off have not been officially detailed.
Circuit breakers triggered
South Korea's stock market uses circuit breakers that automatically halt trading when the index falls by a predetermined percentage. In July, these were triggered seven times, temporarily pausing trading to allow investors to process the rapid decline. The specific thresholds and durations of the halts are part of the market's established rules.
Value wiped out
The total market capitalization lost during the month reached 250 trillion won, a staggering sum that reflects the breadth of the sell-off. The decline affected both large-cap and small-cap stocks, though individual company performances varied.
The KOSPI enters August with investors on edge after the worst monthly performance on record. Trading resumed after each circuit breaker halt, but the index continued to fall through the month.
