Why did South Korean stocks fall on Monday?

South Korean stocks declined after a technology-led Wall Street sell-off intensified concerns about whether large investments in artificial intelligence infrastructure will produce sufficient returns. Investors also remained cautious ahead of major corporate earnings reports and the US midterm elections.

How did major Korean technology and industrial stocks perform at the Seoul market open?

Technology shares led the decline, with Samsung Electronics down 1.28 percent and SK hynix off 2.83 percent. Hyundai Motor fell 1.12 percent, while HD Hyundai Heavy Industries dropped 3.7 percent; Korean Air and POSCO Holdings moved higher.

What market factors were investors watching after the Seoul stock market opened lower?

Investors were awaiting earnings reports from Tesla and Meta Platforms due during the week, the Nov. 3 US midterm elections and further clarity on the interest-rate outlook. The Korean won was trading at 1,334.15 won per dollar at 9:15 a.m.

Seoul stocks open sharply lower after US tech sell-off

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Summary

Seoul shares opened sharply lower Monday after a technology-centered sell-off on Wall Street. The KOSPI opened down 3.17 percent before trading 1.69 percent lower at 5,572.10 as of 9:15 a.m. Investors questioned whether heavy AI infrastructure investment can generate sufficient returns and awaited major earnings reports and the US midterm elections. Tech stocks led declines, while Korean Air and POSCO Holdings gained.

Key Facts

The KOSPI rose 2.05 percent to close at 5,668.05 Friday, ending a seven-session losing streak during which it had fallen 6.3 percent.
The Dow Jones Industrial Average fell 0.34 percent and the Nasdaq Composite plunged 2.14 percent on Friday in the United States.
Samsung Electronics fell 1.28 percent, SK hynix declined 2.83 percent, Hyundai Motor dropped 1.12 percent and HD Hyundai Heavy Industries shed 3.7 percent.
Korean Air rose 1.14 percent and POSCO Holdings gained 0.51 percent among the advancing stocks.
The Korean won traded at 1,334.15 won against the US dollar at 9:15 a.m., up 2.35 won from the previous close.

By Yonhap

Published Oct 19, 2026 9:19 am KST
Updated Oct 19, 2026 9:41 am KST

The KOSPI index is displayed at a dealing room of Hana Bank in Seoul, Monday. Yonhap

Seoul shares opened sharply lower Monday in the wake of a technology-centered sell-off on Wall Street, as concerns mount over whether heavy investment in artificial intelligence (AI) infrastructure can generate sufficient returns.

After opening 3.17 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) narrowed losses, trading down 95.95 points, or 1.69 percent, at 5,572.10 as of 9:15 a.m.

The KOSPI rose 2.05 percent to close at 5,668.05 on Friday, snapping a seven-session losing streak during which it had fallen 6.3 percent.

On Friday (U.S. time), the Dow Jones Industrial Average fell 0.34 percent and the tech-heavy Nasdaq Composite plunged 2.14 percent.

Investors remain cautious ahead of earnings reports from major companies, including Tesla and Meta Platforms, due this week, as well as the Nov. 3 U.S. midterm elections, amid continued uncertainty over the interest rate outlook, analysts said.

In Seoul, tech stocks led the decline.

Market bellwether Samsung Electronics gave up 1.28 percent and its chipmaking rival SK hynix declined 2.83 percent.

Top carmaker Hyundai Motor backtracked 1.12 percent and leading shipbuilder HD Hyundai Heavy Industries shed 3.7 percent.

Among gainers, national flag carrier Korean Air rose 1.14 percent and leading steelmaker POSCO Holdings climbed 0.51 percent.

The Korean won was trading at 1,334.15 won against the U.S. dollar at 9:15 a.m., up 2.35 won from the close of the previous stock trading session.

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