On October 20, the KOSPI index recorded a decline of over 4%, struggling to maintain support at the 5500 level.
According to the Korea Exchange, as of 1:30 PM, the KOSPI index was down 252.67 points (4.38%) at 5518.95.
The index opened at 5733.57, down 34.44 points (0.60%), and at one point fell 4.76% to 5493.24, failing to hold the 5500 mark. After briefly recovering above 5600 during the morning session, it fluctuated back down to the low 5500s.
In the securities market, foreign and institutional investors sold a net 817.2 billion won and 740.5 billion won, respectively, while individual investors showed a net buying position of 1.0543 trillion won.
As of the current time, Samsung Electronics was trading at 20,500 won, down 3.44%, while SK Hynix was at 121,600 won, down 4.78%. SK Hynix briefly dropped 7.36%, falling below 120,000 won to the 118,000 won range.
Other major stocks also experienced significant declines, including SK Square (-5.58%), LG Energy Solution (-3.59%), Hyundai Motor (-5.67%), Samsung SDI (-4.27%), and SK Innovation (-8.34%).
The KOSDAQ index also fell, showing a decrease of 24.91 points (3.08%) at 784.00. It started at 805.37, down 3.52 points (0.44%), and similarly expanded its losses.
In the KOSDAQ market, individual investors were net buyers of 317.9 billion won, while foreign and institutional investors sold a net 245.2 billion won and 69.3 billion won, respectively.
Stocks such as EcoPro (-7.19%), EcoPro BM (-8.29%), Alteogen (-3.14%), JUSUNG Engineering (-4.06%), and Hanmi Semiconductor (-5.66%) were also trading lower.
Newly listed AX (AI transformation) and AI cloud company Ellice were down 33.92% from their offering price of 90,500 won.
Experts predict that recovery in investor sentiment will be challenging until uncertainties regarding the future performance and profitability of semiconductor companies are resolved.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The KOSPI is showing excessive declines due to ongoing uncertainties in the AI market following the collapse of CoreWeave's corporate bonds, technological competition in Chinese memory, concerns over reduced investments from U.S. big tech, and worries about weakened fourth-quarter performance for export companies due to declining exchange rates. The continued drop in stock prices, despite already being in oversold territory, indicates a deterioration in investor sentiment."
He added, "At this point, it may be necessary to consider adjusting overall strategies after confirming third-quarter results, and government measures to stabilize market supply and demand are also needed."
* This article has been translated by AI.
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