South Korea\'s KOSPI fell nearly 10 percent on Tuesday to the 8,200 level, triggering successive sell-side sidecars on the KOSPI and Kosdaq and a first-stage circuit breaker in the main board market. Individuals were net buyers, while foreigners and institutions sold heavily. Big semiconductor shares led losses, with SK Hynix and Samsung Electronics down more than 12 percent. The won weakened slightly against the dollar.

Expectations are rising that talks on a basic law for digital assets will resume after South Korea’s June 3 local elections, but passage this year remains uncertain. Review depends on finalising the National Assembly’s second-half leadership and restructuring the political affairs committee. The government’s proposal is seen as a key variable and could revive disputes over exchange shareholder limits and won-based stablecoin issuance. Industry and regulators remain divided over priorities.