Kospi −5.5% Breaks Its 18-Month Uptrend: Morning 10

KS11.INDXEWY000660.KS005930.KS

What

The Kospi closed down 5.5% at 6,035, its fifth loss in a row, after dropping as far as about 5,914 (−7.4%) in the morning, as reported. When it fell below 6,000 the exchange triggered its sell-side 'sidecar' — a five-minute pause in computer-driven program selling — for the first time in about two months. The index is now 13.8% below its 2 October close of 7,003.74 and 33.8% below its record close of 9,114.55 on 22 June. In New York on Monday the Korea fund EWY lost 4.0% to 170.11.

If

the Kospi closes the week below 6,080, its 4 August low

Why

that would leave the July lows as the next support — the summer sell-off would be back on the table

Then

the Kospi page follows the index and its two big chip makers

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KS11.INDXEWY

What

Three times since August the Kospi climbed toward 7,200 and turned back, each time from a lower high: 7,217 on 18 August, 7,172 on 8 September, 7,045 on 6 October. Lower highs after a big fall say that sellers use every rally. Then the floor went. A line drawn under the closing lows since April 2025 — 2,294 on 9 April 2025, 5,594 on 30 July 2026 — stood near 6,420 on Monday. The Kospi closed at 6,384, the first close below it, and today it closed about 6% under it: in the editor's chart the uptrend of the last 18 months is broken.

If

the Kospi stays below the old line, about 6,435 today, for the rest of the week

Why

a broken trend of this length often leads to a test of the last major low — here the summer: 5,594 at the close on 30 July and 5,263 at the intraday low a day earlier, 7% and 13% below the close. A visit is possible, not certain

Then

a quick close back above the line would turn this into a false break — the chart below shows the editor's lines

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000660.KS005930.KSMU

What

The two memory makers carry the index down. By mid-morning SK Hynix traded about 8.5% lower near ₩1.47 million and Samsung Electronics about 6.8% lower near ₩233,500, as reported by KED Global; later reports put both around −8%. On Monday they had already closed −4.5% at ₩1,605,000 and −4.4% at ₩250,500. As on Monday, the reason given is China: the Chinese memory maker CXMT reported progress on a next-generation memory chip that could add supply. Foreign investors sold; Hana Securities also pointed to chip-fund rebalancing and to the end of both companies' share buybacks — SK Hynix's programme is expected to finish around the 20th.

If

SK Hynix and Samsung close the day down 8% or more

Why

Korea is the cleanest read on the memory trade — a second day of heavy selling on a Chinese rival says investors now price more supply, not just one weak week for US chips

Then

the memory and HBM page follows the memory makers and their prices

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