KOSPI Enters Bull Market as Chip Rally Extends Rebound

South Korea's benchmark KOSPI index surged into bull market territory on Thursday, August 13, 2026, completing a dramatic recovery from a severe July rout. The index climbed as much as 4.8 percent during the session, extending its rebound from a July 30 low to approximately 22 percent, crossing the threshold commonly used to define a bull market. The rally was led by sharp gains in semiconductor giants Samsung Electronics and SK Hynix, which jumped more than 5 percent and 7 percent, respectively.

The powerful advance marks a stark reversal from the market's performance just weeks earlier. In July, the KOSPI suffered its worst monthly decline since the 2008 global financial crisis, falling roughly 22 percent. That selloff was triggered by forced liquidations of leveraged bets on chipmaker stocks, which wiped out billions in retail investor wealth. The recent recovery has been fueled by renewed confidence in the artificial intelligence sector, following strong earnings and spending commitments from major U.S. technology companies. This has reinforced expectations for sustained high demand for memory chips, a critical component in AI infrastructure.