A massive selloff in South Korean stocks is driving retail investors into cryptocurrency. On July 13, the KOSPI index triggered circuit breakers again, with Samsung Electronics and SK Hynix plunging over 7% and 12% respectively. The index has now fallen more than 20% from its June 19 peak.
Exodus from Equities
Data from Coingecko shows that trading volume on Upbit, South Korea's largest crypto exchange, surged to $4.12 billion in the past 24 hours — a 436% daily increase. The top five traded coins were BTC, XRP, ETH, T, and BLAST. The KOSPI opened at 7,412.03, down 63.91 points, and by mid-morning triggered a sidecar halt on KOSPI 200 futures after a 5% drop.
Semiconductor Slump
Semiconductor stocks led the rout, with Samsung Electronics falling 7.72% and SK Hynix tumbling over 12%. SK Square, the largest shareholder of SK Hynix, dropped 15%, and Samsung Electro-Mechanics lost 17%. The steep decline has cast doubt on the sustainability of the semiconductor super cycle, pushing retail investors to seek higher returns in digital assets.