New Delhi, July 14 -- South Korea's Kospi, the world's best-performing equity market in 2026, extended its sharp correction on Tuesday, falling another 5% to 6,448.86. The benchmark index has now tumbled more than 31% from its June peak of 9,386, entering the bear market territory after one of the strongest AI-driven rallies seen this year.

The latest decline comes after the Kospi surged to record highs on the back of an extraordinary rally in technology stocks. Despite the sharp correction, the benchmark index is still up more than 50% so far in 2026.

The rally had far exceeded expectations. Just a year ago, South Korean President Lee Jae Myung had set a 5,000-point target for the Kospi, a goal many considered ambitious at the time. In...