KOSPI Closes Down 4% at 6500 Range... Sidecar Triggered on Both Markets

Continued Weakness Led by Semiconductors

"Volatility Mounts Amid Unclear Supply and Demand Trends"

On July 20, the KOSPI closed down 4%, finishing trading in the 6500 range. The KOSDAQ also plunged by 5%, triggering sell-side sidecar measures on both markets during trading.

On this day, the KOSPI ended trading at 6516.27, down 4.46% from the previous session. At around 11:21 a.m., the index fell more than 5%, which prompted the activation of a sell-side sidecar.

On the 20th, employees are monitoring the stock market and exchange rates in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On this day, the KOSPI opened at 6643.58, down 2.60% from the previous trading day, and the KOSDAQ opened at 773.21, down 2.35%, with the losses narrowing. July 20, 2026 Photo by Jo Yongjun

Individual and foreign investors were net buyers of 351 billion won and 516.1 billion won, respectively, but institutional investors sold 921.8 billion won, dragging the index lower.

With the exception of real estate (up 0.84%), all sectors posted declines. The biggest losses were seen in insurance (down 8.98%), machinery and equipment (down 7.22%), retail (down 6.27%), medical and precision instruments (down 5.86%), securities (down 5.79%), transportation equipment and parts (down 5.75%), metals (down 5.06%), finance (down 4.59%), manufacturing (down 4.51%), and electric and electronic (down 4.43%).

All of the top 10 stocks by market capitalization recorded losses as well: Samsung Electronics (down 4.31%), SK hynix (down 4.23%), SK Square (down 2.89%), Samsung Electro-Mechanics (down 0.16%), Hyundai Motor (down 6.12%), LG Energy Solution (down 4.94%), Samsung Biologics (down 3.65%), Samsung Life Insurance (down 8.91%), KB Financial Group (down 6.79%), and Kia (down 6.48%).

The KOSDAQ also closed at 749.64, down 5.33% from the previous session. Individuals were net buyers of 190.7 billion won, while foreign investors and institutions were net sellers of 57.7 billion won and 134.8 billion won, respectively. The KOSDAQ market also saw a sell-side sidecar activated at around 10:52 a.m. on the same day.

Among the KOSDAQ's top market cap stocks, only Samchundang Pharm rose sharply (up 29.82%). Other major stocks declined: Alteogen (down 2.53%), Ecopro BM (down 7.38%), Ecopro (down 8.12%), Jusung Engineering (down 10.64%), Rainbow Robotics (down 5.54%), Wonik IPS (down 18.19%), LIG Nex1 (down 4.43%), Kolon TissueGene (down 1.45%), and PSK (down 12.59%).

Lee Kyungmin, a researcher at Daishin Securities, analyzed, "Investor sentiment was dampened by negative news related to semiconductors and heightened risks of military conflict between the United States and Iran." He added, "Kioxia's defeat in a U.S. patent lawsuit, resulting in compensation orders exceeding 300 billion won, and news of Moonshot preparing for an IPO in the Hong Kong stock market further weakened sentiment in the semiconductor sector."

He continued, "However, a positive outlook remains for resilient memory demand and a continued supply-side advantage. As a result, bargain-hunting and profit-taking orders are intersecting, with no clear direction in fund flows among foreign, institutional, and individual investors, leading to mixed sentiment and increased market volatility."

This content was produced with the assistance of AI translation services.