Korea’s stock disaster in 6/23/2026

 

Korea’s stock disaster in 6/23/2026

 

The peak performance of the Korean stock market was 95% before the crash. After the crash of 6/23/2026, the index, Samsung and SK Hynix were still profitable year-to-date but they had a big cut.  It crashed on 6/23/2026 and had not recovered since then as of this writing. There are lessons to be learned:

 

·        Diversification. Samsung and SK Hynix represent about 60% of the Korean market. We do not have this problem in the USA in our S&P 500 ETFs. If someone tells you he made millions in one or two stocks, he is just lucky and it is too risky for not diversified.

·        Never leverage. Do not use margin and leverage ETFs especially those ETFs with a few or even one stock.

·        Avoid stocks with low values. Check their P/E and Forward P/E. It may not be the case, but we should favor value better than momentum, especially on the money you cannot afford to lose.

·        Union. Samsung agreed to give 12% profit to the employees, and SK Hynix agreed with similar term.

·        Competition. A Chinese company is starting to produce memory and HBM, high bandwidth memory, that would eat into their profits, especially SK Hynix.