South Korea’s AI-Heavy Kospi Slumps as July Sell-Off Tests One of 2026’s Hottest Trades

South Korea’s equity market has been hit by a sharp reversal after one of 2026’s most crowded artificial-intelligence trades began to unwind in July. The benchmark Kospi remains up about 60% this year, but the sell-off has exposed how heavily the market’s rally depends on chipmakers tied to AI infrastructure.