South Korea’s benchmark Kospi index has plunged nearly 20 per cent in two days, wiping out much of the historic 2025 rally that saw the market surge 80 per cent. The correction underscores the cyclical vulnerabilities and governance concerns that have long plagued the country’s equity market. Kospi stocks now trade at less than half their peak valuation, reflecting a dramatic shift in investor sentiment after a period of unprecedented optimism. Foreign investors have withdrawn nearly $15bn this year, while domestic retail buyers have capitalized on sharp dips, highlighting contrasting strategies in the volatile market.