The David Lin Report · Friday, July 3, 2026
The Korean Kospi index experienced a significant drop of 7.89% today, previously being the top-performing index year-to-date. This decline was reportedly triggered by Meta's announcement to focus more on cloud computing, which investors interpreted as a potential decrease in demand for semiconductors. Foreign investors net sold over 5 trillion won on the Kospi, exacerbating the sell-off.
“The Kospi index fell 7% to the 7600 level today. It plunged about, um, 7.89%. Uh, as of the time of this recording. Now, as you probably aware, the Korean Kospi index was the number one performing index year to date as of June.”
“Now, uh, admit a shock triggered by Meta. It seems Meta's move into the cloud business, cooled semiconductor investor sentiment in the US and sell orders poured in around chip stocks in Korea as well.”
“In particular, foreign investors net sold more than 5 trillion won on the Kospi that day, dragging the index lower. Um, Meta announced that they would focus more on, well, not focus more, but moving into the cloud computing space, potentially decreasing demand for semiconductors.”