Should You Buy South Korean Stocks? The KOSPI Crash Explained
Should you buy South Korean stocks after the huge KOSPI crash? South Korea has had one of the wildest stock market stories of 2026, with the KOSPI experiencing a dramatic sell-off in July, before rebounding sharply into August and September. But what actually happened to cause a fall of over 40%? (yes really). And does the fall create an opportunity for investors to do the classic 'buy the dip'? CHAPTERS: 00:00 Korea’s Wild Ride 00:49 KOSPI’s AI Chip Concentration 01:33 Bubble Warning Signs 02:21 Leverage ETFs Fuel the Surge 03:18 The Sharp Reversal Explained 04:01 Rebound and Buy the Dip Question 04:28 Opportunity vs Risk Factors 05:39 How to Decide for Your Portfolio In this video, I look at:
Why the KOSPI became so heavily dependent on Samsung and SK Hynix
How the AI boom has driven South Korean stocks
What leveraged ETFs had to do with the market volatility
Why the KOSPI fell so sharply
What you're actually buying when you invest in South Korea
Whether the current market could represent an opportunity or a warning
How to think about South Korea if you already invest through a global fund
The difference between investing for the long term and speculating on a short-term trend
South Korea is a major semiconductor market, and AI remains a huge structural theme. But when an index is heavily concentrated in a small number of companies and a single sector, things can move very quickly in both directions. So should you buy the dip?