Kospi's March rout punctuates a stellar 2026 run

South Korea’s KOSPI, which had been the world’s top performer in 2026, plunged about 19% in March after a rally that had seen the index up roughly 50% by February and about 20% for the year to date. The drop came as energy prices surged and heavyweight chipmakers like Samsung Electronics and SK Hynix faced repricing, pushing the market toward bear territory for the month, while the won weakened and energy-import dependence underscored Korea’s economic vulnerability. Despite the March setback, the Kospi remains the strongest major market for 2026 so far, illustrating how quickly sentiment can shift in a volatile cycle.