The KOSPI index shed nearly 17% over two days, wiping out $620 billion in market cap with circuit breakers halting trading. SK Hynix posted a record 60.54 trillion won operating profit in Q2, yet missed the 64 trillion won analyst consensus. CDS on the five largest US hyperscalers jumped from 115bps to 162bps, implying a 12% five-year default probability, with Oracle representing the biggest credit risk due to its OpenAI exposure. Korean retail investors, heavily leveraged through single-stock ETFs that crossed $50 billion AUM in July, are bearing the brunt of the sell-off.
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