1. The recent KOSPI selloff was primarily driven by foreign investors aggressively reducing risk exposure amid renewed geopolitical tensions in the Middle East and rising global market uncertainty.


2. Higher oil prices and persistent inflation concerns increased fears that major central banks, particularly the U.S. Federal Reserve, may keep interest rates elevated for longer than previously expected.


3. KOSPI’s heavy dependence on semiconductor and export-related stocks amplified the decline, as investors took profits after a prolonged rally and reassessed earnings expectations.


4. Derivatives and futures markets further intensified volatility, with institutional investors using leveraged positions and hedging strategies that accelerated downward price movements beyond what fundamentals alone would justify.


5. Despite the sharp correction, Korea’s underlying fundamentals—including strong semiconductor demand, resilient exports, and relatively attractive valuations—remain largely intact, suggesting that much of the decline reflects risk repricing rather than a deterioration in economic conditions.