South Korea becomes world’s cheapest major market after tech selloff
Summary
South Korea has experienced a dramatic shift in its market status, transforming from one of the strongest performing major markets in early 2026 to the cheapest globally, following a significant decline in technology stocks. This brutal selloff has seen South Korean equity valuations fall to approximately half of those in Indonesia, highlighting the extent of the downturn in the tech sector.
Analysis
Indonesia: Indonesia is a Southeast Asian country with a growing economy and emerging stock market. Its valuations serve as a key benchmark in the reported comparison, remaining notably higher than those in South Korea amid the recent market rout. South Korea: South Korea is an East Asian nation with a highly developed economy and prominent technology sector that influences its equity markets. Following a brutal tech selloff, its stock valuations have become the lowest among major markets. The development highlights shifts in investor sentiment toward its markets compared to regional peers. Market Shift: South Korea transitioned rapidly from one of the strongest performing major markets this year to the world's cheapest due to a severe technology-driven decline. Valuation Comparison: South Korean equity valuations are now substantially lower than those in Indonesia after the selloff.
Categories
techmacro