KOSPI Falls 3.5% at Open as 2026 Gain Shrinks From 116% to 31%

The Korea Composite Stock Price Index (KOSPI) fell 3.5% at Tuesday’s open as a chip-led AI sell-off drags on, reducing its 2026 achieve to about 31% from roughly 116% at its June document shut.

The index now sits about 39% beneath that peak. The slide gathered tempo in July, when it misplaced 22%, and October has erased one other 17% by means of Oct. 16.

Is the KOSPI Now a Bet on AI Spending?

Memory chipmakers Samsung Electronics and SK Hynix accounted for 44% of the index in May.

However, the pair fell 19.74% and 28.38% between Oct. 1 and Oct. 16, JoongAng reported. Credit worries over AI spending grew after bond costs fell at cloud supplier CoreWeave.

Foreign buyers turned web sellers, and the index fell seven straight periods by means of Oct. 15.

Then stronger-than-expected US inflation information hit on Oct. 15, and the index fell 7.57% to 5,554.22.

Did Borrowed Money Turn a Pullback Into a Rout?

Margin loans, which let buyers purchase shares with borrowed cash, peaked at 38.63 trillion received on June 24.

Forced liquidations, which happen when brokers promote shares from buyers who miss cost deadlines, topped 50 billion received for 4 straight periods by means of Oct. 16.

Institutional shopping for lifted the index 1.76% to 5,768.01 on Monday after a 3.17% decrease open, earlier than immediately’s slide.

Because the index leans on two shares, its subsequent leg might hinge on whether or not AI spending plans maintain up and overseas promoting slows.

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