KOSPI Falls 7.57% Last Week as Market Eyes Big Tech AI Monetization Strategy

According to SK Securities research published July 13, South Korea's KOSPI index fell 7.57% last week to 7,475.94, entering a technically weakened market zone with declines exceeding 20% from recent highs. IT hardware was the hardest-hit sector with an 18.7% drop. Semiconductor stocks fell 9.1%, while the U.S. S&P 500 rose 1.23% and Nasdaq climbed 1.74%, highlighting a divergence between Korean and American markets.

SK Securities analyst Jo Jun-ki noted that strong semiconductor earnings alone prove insufficient to drive share prices higher. Market sentiment now hinges on whether global big tech companies can demonstrate AI investment monetization progress, with ASML and TSMC earnings due July 15-16 serving as key catalysts for domestic semiconductor investor confidence. The VKOSPI volatility index remains elevated at 78.15, requiring further declines to stabilize the market.