Kospi closes down 3.5 percent as chip selloff deepens

South Korea's Kospi closed down 3.52 percent at 5,533.77 on Thursday and the Kosdaq fell 3.62 percent, as Samsung Electronics and SK Hynix dropped 4 to 5 percent and investors kept questioning the profitability of AI investment despite strong results, Yonhap reported.

Why it matters: Seoul fell sharply for the second time this week even as AI earnings beat expectations, with the Bank of Korea's hawkish hold at 3.00 percent and the end of the two chipmakers' buyback programmes removing support under the index.

Data as of Yonhap News Agency reports of October 22, 2026, in Korean, read in full in translation: the closing report carrying the Korea Exchange figures (Kospi down 201.89 points, 3.52 percent, to 5,533.77; Kosdaq down 28.66 points, 3.62 percent, to 764.10) and the intraday analysis report carrying analyst attribution and the Bank of Korea hold at 3.00 percent. Single source, hence grade C. Developing item.

South Korea’s Kospi closed down 201.89 points, or 3.52 percent, at 5,533.77 on Thursday, after opening 1.14 percent lower, briefly turning positive and then sliding through the session, Yonhap reported, citing Korea Exchange figures. The Kosdaq closed down 28.66 points, or 3.62 percent, at 764.10.

Samsung Electronics and SK Hynix, together about 51 percent of the Kospi’s market value, fell 4 to 5 percent and dragged the index lower. Yonhap, citing Seoul analysts, attributed the fall to profit taking after the two stocks rose more than 5 percent the previous day, to Meta reporting strong third quarter results before the open but giving no specific capital spending guidance for next year, with its free cash flow turning negative, and to a demand gap after both companies’ large share buyback programmes recently ended. The Bank of Korea held its base rate at 3.00 percent the same day in what analysts described as a hawkish hold, with Governor Shin Hyun-song signalling that further increases remain possible.

Kospi closes down 3.5 percent as chip selloff deepens

Sources