Kospi Index enters bear market as South Korea's tech stocks slump

South Korea's Kospi Index has entered a bear market, falling 27% from its yearly high to 6,852 points ahead of the central bank's interest rate decision, wiping out over $2.5 trillion in market value. The decline is driven by major technology and semiconductor stocks losing momentum, with Samsung Electronics down 30%, SK Hynix down 42%, and SK Square down 52% from their peaks. Margin lending balances rose to $27.7 billion in June from $19.4 billion in January, while foreign investors have been selling positions. Economists expect the Bank of Korea to hold rates at 2.75% on Thursday, though a hike remains possible. The index has recovered from its August low of 5,279 points but faces resistance at 7,198 points, with support near 6,000 points.