The KOSPI index fell more than 3% to close at 5730 due to a massive sell-off by foreign investors. Major semiconductor stocks, including Samsung Electronics and SK Hynix, contributed to the decline, leading to a broader sell-off across the domestic market.
On October 30, the Korea Exchange reported that the KOSPI closed at 5730.74, down 206.92 points (3.48%) from the previous trading day. The KOSDAQ index also dropped 28.85 points (3.83%) to finish at 724.38.
In the securities market, foreign investors sold a net 1.6173 trillion won, pulling down the index. In contrast, individual and institutional investors bought a net 621 billion won and 742.6 billion won, respectively, absorbing the foreign selling pressure.
Most large-cap stocks showed weakness. Samsung Electronics ended at 225,000 won, down 3.02%, while SK Hynix plummeted 7.08% to close at 1,418,000 won. Other semiconductor-related stocks, including Samsung Electronics Preferred (-5.33%), SK Square (-5.88%), and Samsung Electro-Mechanics (-7.50%), also fell.
On the other hand, Samsung Biologics saw a notable gain of 8.86%, closing at 1,487,000 won. LG Energy Solution rose 0.98% to finish at 359,500 won. Hyundai Motor (-3.59%), KB Financial (-0.83%), and Samsung Life (-2.70%) also experienced declines.
In the KOSDAQ market, foreign and institutional investors sold a net 26.7 billion won and 137.5 billion won, respectively. Individual investors bought a net 168.7 billion won, but it was insufficient to prevent the index from falling.
Sell-offs were particularly evident among large-cap stocks. Alteogen fell 3.86% to 211,500 won, while EcoPro dropped 1.50% to 72,200 won. Other stocks like EcoPro BM (-1.20%), Juseong Engineering (-6.78%), and Rainbow Robotics (-3.97%) also showed weakness.
Notably, Simtech plummeted 8.02%, and Wonik IPS fell 7.72%, indicating significant losses among semiconductor equipment and parts stocks. IOTech also dropped 6.39%. Conversely, HLB rose 0.76%, showing resilience amid the downturn.
On this day, 234 stocks rose while 656 fell in the securities market. In the KOSDAQ market, only 266 stocks gained, while 1,406 stocks declined, highlighting a pronounced downturn among KOSDAQ-listed companies.
The sharp decline in the stock market is partly attributed to concerns over the investment burdens faced by major U.S. tech companies in artificial intelligence (AI). The weakening of key U.S. tech stocks due to rising costs and profitability uncertainties related to AI investments has negatively impacted domestic semiconductor stocks.
Looking ahead, the investment environment and regulatory developments regarding AI in the U.S. are expected to be significant factors for the market. KB Securities noted in a report released on the same day that the potential for stricter data center regulations following the U.S. midterm elections could act as a short-term source of instability in the financial markets.
Kwon Hee-jin, a researcher at KB Securities, stated, "Immediately after the elections, regulatory headlines may shake the market more than their real impact, but as we move into the enforcement phase, the intensity will likely ease. While the pace of investment may slow down somewhat, the scale is unlikely to decrease significantly, so the midterm elections are unlikely to drastically change the outlook for AI investment and growth next year."
* This article has been translated by AI.
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