# South Korea ETF KORU Drops Over 18% Overnight as Semiconductor Selloff Drags KOSPI Lower

- URL: https://stocks.freetheai.org/news/south-korea-etf-koru-drops-over-18-overnight-as-semiconductor-selloff-drags-527b3d
- Published: 2026-10-15T02:35:51Z
- Category: markets; sentiment: bearish; impact: high
- Symbols: [KRX:KOSPI](https://stocks.freetheai.org/symbols/KRX-KOSPI)
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The Direxion Daily South Korea Bull 3X ETF (KORU) plummeted more than 18% overnight following a sharp selloff in South Korean equities. The benchmark KOSPI Composite Index (KRX:KOSPI) tumbled 7.84% to 5,538, extending its decline to 40% below its record high from June 19. The drop sent the benchmark below the 6,000 level for the first time since late July.

The slide is primarily driven by mounting pressure on memory chip makers Samsung Electronics and SK Hynix (SKHY), which together make up nearly half of the KOSPI index. China's ChangXin Memory Technologies announced plans to launch next-generation memory products by the end of the year, raising fears of increased supply and lower DRAM prices. The news triggered broader chip sector losses globally, dragging down U.S. technology stocks including Nvidia Corp. (NVDA), Micron Technology Inc. (MU), and Advanced Micro Devices Inc. (AMD). Massive foreign capital outflows have compounded the downturn, with international investors selling nearly 199.1 trillion Korean won of KOSPI shares as of Oct. 12, heavy on semiconductor positions.

Investors should monitor DRAM pricing trends and memory chip supply developments as Chinese competition increases. Market participants will also watch whether foreign selling in South Korean semiconductor equities stabilizes or continues to weigh on heavily concentrated indices like the KOSPI and leveraged funds such as KORU.

## Key points

- The Direxion Daily South Korea Bull 3X ETF (KORU) plunged over 18% overnight as South Korean stocks faced a severe selloff.
- South Korea's KOSPI Composite Index fell 7.84% to 5,538, sitting 40% below its record high recorded in June.
- China's ChangXin Memory Technologies announced plans for next-generation DRAM chips, stoking fears of increased memory market supply.
- Foreign investors sold roughly 199.1 trillion Korean won of KOSPI shares as of Oct. 12, with most selling concentrated in top chipmakers.

## Questions and answers

### Why is the KORU ETF falling?

KORU is a leveraged fund tracking South Korean equities. It dropped over 18% overnight due to a steep selloff in the KOSPI index, which was driven by sharp declines in major semiconductor stocks like Samsung Electronics and SK Hynix.

### Why are South Korean semiconductor stocks selling off?

Concerns grew after China's ChangXin Memory Technologies announced plans to release next-generation memory products by year-end, threatening increased DRAM supply. Heavy foreign investor selling and AI valuation concerns also pressured the market.

### How much has the KOSPI index dropped from its peak?

The KOSPI index has fallen 40% from its record high reached on June 19, dropping below the 6,000 mark for the first time since late July.