Korea Tech Daily — 2026-10-18

South Korean tech stocks faced severe volatility, with chip suppliers tumbling over 20% as Samsung and SK hynix shares plunged amid AI and rate fears. Meanwhile, the financial regulator warned investors of the risks associated with leveraged derivatives on major tech stocks, and venture capital investment in Korean startups hit a four-year high driven by AI and robotics deals.

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Korean Tech Stocks Plunge; VC Funding Hits 4-Year High

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Top Story

South Korea’s equity benchmark, the Kospi, dropped nearly 8% into bear market territory as global semiconductor stocks sold off, dragging down Samsung Electronics and SK hynix. This decline was fueled by mounting concerns over interest rates and AI-related debt, leading to the steepest weekly drops for these giants since the 2008 financial crisis. The sell-off spilled into Asian and European markets, with chip suppliers falling more than 20% in the last week.

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Samsung · SK Hynix · LG

• Chip Suppliers Tumble Over 20% as Samsung, SK hynix Slide Korean chip suppliers saw their shares fall by more than 20% last week, mirroring the steepest weekly declines for Samsung Electronics and SK hynix since 2008.

  

• Regulator Warns of 200-Times Leveraged Bets South Korea's financial regulator issued a warning to investors regarding the high risks of trading offshore derivatives linked to shares of Samsung Electronics and SK hynix.

• Shares Fall Short of ELS Redemption Triggers Early redemptions of Equity-Linked Securities (ELS) tied to Samsung Electronics, SK hynix, and the KOSPI 200 failed to trigger because both stocks closed below their 85% reference thresholds.

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Naver · Kakao · LINE

• Kakao Launches Voice-Driven AI Assistant Kakao introduced "Kanana Space," its new AI agent service, featuring a voice-driven assistant integrated into KakaoTalk.

  

• "AI for Everyone" Service Coming in December Kakao plans to launch a new service called "AI for Everyone" in December, built through a partnership with 34 companies and institutions to assist users with tasks like bookings.

• Naver and Kakao Gear Up for Agentic AI Both Naver and Kakao are accelerating their push into agentic AI, with Naver investing over 1 trillion won to support AI shopping agents and search tabs launching in 2026.

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Startups & Investment

• VC Funding Hits Four-Year High Venture capital investment in South Korean startups surpassed 10 trillion won ($7.4 billion) in the first nine months of 2026, driven by major deals in AI and robotics.

• Hurotics Raises $19M for Wearable Robotics Wearable robotics firm Hurotics secured approximately $19 million in funding, backed by major investors including Naver, Lotte, and Daewoong.

  

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Policy & Industry

• IMF Warns of AI Concentration Risks The International Monetary Fund (IMF) warned that South Korea's economy faces growing vulnerabilities due to rising AI concentration, noting that AI-driven growth could reverse and risk exports and investment.

• SK Hynix Nasdaq Debut Sparks Listing Interest Following SK Hynix's historic $26.5 billion Nasdaq debut, mid-cap Korean tech companies are eager to list in the U.S., though they face strict domestic regulatory hurdles.

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What to Watch

• Regulatory Response to Derivative Risks: Monitor if the financial regulator introduces stricter measures on offshore derivatives linked to major tech stocks.
• DeepSeek Impact on Memory Stocks: Watch for how news regarding Chinese AI company DeepSeek impacts the share prices of Samsung Electronics and SK hynix.
• Kakao’s December Launch: Keep an eye on the rollout of Kakao’s "AI for Everyone" service and its initial market reception.