Why did Seoul stocks fall sharply on Tuesday morning?

Concerns over investments in the artificial intelligence value chain sparked a sell-off in major chip shares, leading tech stocks to drive the broader market lower.

How far did the KOSPI fall and what was its intraday low?

The KOSPI fell 136.06 points, or 2.36 percent, to 5,631.95 as of 11:20 a.m. It had earlier reached an intraday low of 5,493.24 before recovering some ground.

How did major Korean technology stocks perform during the sell-off?

Samsung Electronics declined 1.03 percent and SK hynix fell 2.74 percent. Samsung Electro-Mechanics moved against the trend, gaining 2.48 percent after opening lower.

Seoul stocks extend losses late Tuesday morning amid AI concerns

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Summary

Seoul stocks fell sharply late Tuesday morning as concerns over investments in the artificial intelligence value chain drove a sell-off in major chip shares. The KOSPI dropped 136.06 points, or 2.36 percent, to 5,631.95 as of 11:20 a.m., after reaching an intraday low of 5,493.24. Samsung Electronics and SK hynix declined, while Samsung Electro-Mechanics gained. The Korean won strengthened to 1,327.6 won against the U.S. dollar.

Key Facts

The KOSPI opened 0.6 percent lower before extending its losses to an intraday low of 5,493.24.
The Dow Jones Industrial Average fell 0.07 percent overnight, while the S&P 500 rose 0.41 percent and the Nasdaq Composite gained 1.11 percent to 26,430.89.
Samsung Electronics fell 1.03 percent and SK hynix declined 2.74 percent.
Samsung Electro-Mechanics gained 2.48 percent after opening lower.
The Korean won was up 5.5 won from the previous session’s close at 1,327.6 won per U.S. dollar.

By Yonhap

Published Oct 20, 2026 9:25 am KST
Updated Oct 20, 2026 11:40 am KST

The benchmark KOSPI, along with other indices, are displayed at Hana Bank's dealing room in Seoul, Tuesday. Yonhap

Seoul stocks were trading sharply lower late Tuesday morning as concerns over investments in the artificial intelligence (AI) value chain sparked a sell-off in major chip shares.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 136.06 points, or 2.36 percent, to 5,631.95 as of 11:20 a.m.

After opening 0.6 percent lower, the index extended its losses to an intraday low of 5,493.24, before recovering some ground.

Overnight, U.S. stocks ended mixed as technology shares rebounded from their steepest weekly drop since June.

The Dow Jones Industrial Average edged down 0.07 percent, while the benchmark S&P 500 rose 0.41 percent and the tech-heavy Nasdaq Composite Index gained 1.11 percent to finish at 26,430.89.

In Seoul, tech stocks led the decline.

Chipmakers Samsung Electronics Co. and SK hynix Inc. fell 1.03 percent and 2.74 percent, respectively.

In contrast, Samsung Electro-Mechanics Co., an electronics components affiliate of Samsung Electronics, gained 2.48 percent after opening lower.

The Korean won was trading at 1,327.6 won against the U.S. dollar as of 11:20 a.m., up 5.5 won from the previous session's close.

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