Kospi reverses an early gain on Wednesday and slides to a three month low near 5,895

South Korea's Kospi fell more than 2 percent on Wednesday, 29 July 2026 (7 Mordad 1405), to around 5,895 points, its lowest level in more than three months. The Seoul market had opened higher on bargain hunting before reversing course as the session progressed. The decline followed Tuesday's 10.84 percent plunge, which had left the index at 6,023.66.

The main driver of the reversal was the investor reaction to SK hynix's results: the company posted record second quarter revenue and operating profit, but the figures came in below analyst expectations, reinforcing concerns that artificial intelligence driven earnings growth may be moderating even as demand for high bandwidth memory remains strong. SK hynix shares plunged nearly 5 percent, while SK Square fell 3.6 percent, Samsung Electro-Mechanics 3.8 percent, HD Hyundai Heavy Industries 1 percent and Hanwha Aerospace 1.5 percent.

Concern over capital spending on AI infrastructure, elevated semiconductor valuations and intensifying competition from China's chip industry continued to weigh on sentiment. The Kospi is down 28.24 percent over the past month, though it remains 86.46 percent higher than a year ago; the index's all time high of 9,385.59 was set in June 2026. For Iran's market, the significance of this volatility runs through the broader risk appetite of capital across Asia.