South Korean chip stocks plunge as AI rally fades

South Korean stock markets experienced a severe selloff on July 29, 2026, with major chipmakers Samsung and SK Hynix leading the decline. The drop erased gains from the AI-driven rally, as disappointing earnings from SK Hynix triggered concerns about the sustainability of the AI boom. The selloff also affected Taiwanese equities, while Singapore stocks hit a record high. The rout wiped out $2 trillion in market value, breaking records, and was exacerbated by short unwinding in Korea-Hong Kong correlations.