South Korea's KOSPI falls 40% since June, triggers emergency meeting
The KOSPI just took a huge hit, falling 40% since June, while SK Hynix sank 12.6% after the company reported disappointing earnings.
The KOSPI's drop triggered back-to-back trading halts and prompted the finance minister and top regulators to hold an emergency meeting, as worries grew about whether AI-related investments are really paying off.
Lawmakers blame single-stock leveraged ETFs
The KOSPI index fell as much as 8% on Wednesday, with tech giants like SK Hynix and Samsung Electronics dropping hard. The sell-off also rattled other Asian markets.
Lawmakers are now blaming risky single-stock leveraged ETFs for making things worse, but Finance Minister Koo says he's focused on calming things down and getting the market stable again.
Investors are left wondering what this means for South Korea's tech-heavy economy going forward.