South Korea’s Stock Market Plummets
The Korea Stock Exchange Composite index (KOSPI) experienced a dramatic drop of over 18% in just two days last week, marking its worst weekly performance since 2008. This decline was significantly influenced by steep losses in shares of Samsung Electronics and SK Hynix, which together constitute more than 33% of the KOSPI.
South Korea is the world’s fourth-largest oil importer, making its economy particularly vulnerable to fluctuations in oil prices. Samsung and SK Hynix dominate the global DRAM market, controlling 67%, which remains in high demand. This market resilience suggests that potential price hikes due to higher oil costs may minimally impact their businesses.
