South Korea's KOSPI falls 5%. What's next

South Korea’s KOSPI opened 5% lower, breaking its July lows and extending a sharp six-week correction. The index is now down about 30% from its June 18 high of 9,106 after having nearly quadrupled from 2,300 since April 2025. The article frames the move as a classic leveraged unwind, with momentum turning sharply against the market. Technically, the author highlights 5,840 as the first major retracement level and warns that 5,050-5,000 could come into play if selling continues. The selloff is being driven in part by fading enthusiasm for chipmakers, which had been a major engine of South Korea’s rally. Overall, the piece suggests downside risk remains elevated and that catching the decline too early could be dangerous.