KOSPI Crash and New Rules for South Korea's Crypto Market

South Korea's KOSPI index plunged by 7.4% due to a sharp decline in demand for technology company stocks. SK Hynix shares fell by 8.8%, while Samsung Electronics lost 7.7% of their value.

The main trigger for the crash was an announcement by Chinese company CXMT regarding the development of new DRAM memory technology. The Chinese manufacturer plans to launch server chips by the end of 2026, potentially overtaking its South Korean competitors.

The downturn also affected the global semiconductor market: the US SOX index dropped by 2.7%, and Micron shares lost nearly 4%. Foreign investors actively sold off Korean assets, withdrawing 2 trillion won in a single day.

The sharp drop in risk appetite negatively impacted South Korea's cryptocurrency market. Investors began selling digital assets to cover losses from margin positions in the traditional sector.

• Authorities are blocking access to the websites of 27 crypto exchanges, including KuCoin and MEXC, for lack of registration.
• The tax authority is preparing to introduce a 22% tax on cryptocurrency income starting January 1, 2027.
• The tax-free threshold will be 2.5 million won per year.