KOSPI Plunges 8.95% Below 7,000 Amid Won Fluctuating Around 1,530 per Dollar
Measured from 13 Jul 2026 (event start), not the 13 Jul 2026 announcement
Defense moved -2.0%, the largest reaction measured, though not statistically significant, meaning it may reflect normal market noise rather than the event itself.
LMT, RTX, NOC · down
What Happened
The Korean equity market (KOSPI) collapsed on July 13, 2026, falling 8.95 percent below the 7,000-point threshold in a single trading session, representing a severe one-day selloff. The Korean won simultaneously weakened sharply, fluctuating around 1,530 won per US dollar (depreciation relative to safer havens). The market decline is explicitly attributed to a double shock of geopolitical risk escalation (US-Iran Hormuz conflict) and what is described as supply and demand liquidation, suggesting both international risk-off selling and forced liquidations from Korean investors. Indian equity benchmarks (Sensex, Nifty 50) similarly opened sharply lower on the same date, with Sensex down 0.82 percent and Nifty 50 down 0.78 percent, suggesting coordinated regional selloff. Asian markets broadly experienced significant declines reflecting escalating Middle East tensions.
8.95 percent one-day decline signals panic liquidation rather than orderly repricing; magnitude comparable to acute financial crisis events; represents broader Asian market dysfunction driven by geopolitical shock
Market crash occurred on July 13, 2026 trading session; represents one-day snapshot of broader Asian market selloff on the same date
KOSPI closing data reported for July 13, 2026 (Sunday, Korea time equivalent to market close). The 8.95 percent plunge is confirmed and represents one-day closing performance. Won volatility around 1,530/USD is reported as current intra-day trading.
Read how dates work →How To Read This
Each sector below is a basket of named stocks. The percentage shown is the move beyond the overall market (S&P 500) , what event studies call the . A move only counts as when it sits clearly outside that basket's normal weekly swings.
How Much Sectors Moved
Path over time. Click a sector in the legend to toggle it. Dashed lines mark key moments.
Defense moved most at -2.0% against the market, the direction you would expect from a financial crisis. None of the moves cleared the significance threshold. Read the direction as flavour, not signal.
Volatility
Volatility measures how erratic prices became, a separate signal from the direction of the move.
Market fear eased
- Gold25% → 24%volatility roughly unchanged
- Treasuries10% → 10%1.1x calmer after
- Defense33% → 16%2.0x calmer after
- Broad market15% → 12%1.2x calmer after
The VIX fell 3.0 percent across the window, essentially flat. Read this as the market's demand for protection, not the direction of any single sector.
A ratio above 1.00 means the sector's daily-price swings widened after the event. Gold became the most erratic at 0.96×, and 0 of 4 sectors traded meaningfully wider than they did before. Volatility is a separate signal from direction: a sector can end flat and still have traded wildly along the way.
Phases
| Sector | Peak Move | Peak Day | Reverted By |
|---|---|---|---|
| Gold | +5.6% | Day 17 | Still elevated |
| Treasuries | -4.8% | Day 19 | Still elevated |
| Defense | -5.4% | Day 3 | Day 6 |
| Broad market | +0.3% | Day 18 | Still elevated |
The reaction peaked around day 14 on average. 1 of 4 sectors reverted inside the window, 3 were still elevated at the close. A reaction that reverts is a shock priced in; one that stays is a re-rating.
Historical Precedents
Companies Most Affected
Measured 35 days after the event. Full window complete.
This tool informs your decision. It does not give investment advice.