South Korean Equities Eye Worst Year Since 2008 on Chip, Entertainment Stocks

A foreign currency dealer speaks on a telephone in a dealing room of Hana Bank in Seoul on Feb. 28, 2020. Photo: Bloomberg

(Bloomberg) — While declines in chip and Internet giants have put South Korean equities on course for their worst year since the global financial crisis, investors found winners in the electric-vehicle supply chain and defense sector.

The benchmark Kospi is down about 22% in 2022, headed for its largest loss since 2008. The biggest drags include a 26% decline in Samsung Electronics Co. Ltd. and a loss of double that size in Kakao Corp., as growth stocks were pummeled worldwide over recession fears.