Seoul Stocks: KOSPI and KOSDAQ Daily — 2026-10-31
The KOSPI experienced extreme volatility this week, surging 6.6% on October 28 to reclaim the 6,000 level before plunging 3.48% on October 30 to close around 5,730. This whiplash was driven by a massive $828 million foreign net buy on the back of SK hynix’s record earnings, followed by a sharp reversal as AI spending concerns and Alphabet’s stock drop triggered heavy foreign selling and sidecar halts.
Seoul Stocks: KOSPI and KOSDAQ Daily — 2026-10-31
Top developments
Foreign Net Buying Drives Historic 6.6% Surge
On October 28, the KOSPI jumped 6.63% to close at 6,012.44, marking its largest single-day gain since July 31. This surge was fueled by foreign investors snapping up $828 million (approx. 1.1 trillion won) of KOSPI stocks, the highest daily net buying in 51 days. The rally was primarily driven by SK hynix, which unveiled a 60 trillion won ($43.2 billion) shareholder return plan following record third-quarter profits, causing its stock to jump 11%. Samsung Electronics also rose 9.01% to 242,000 won, while the KOSDAQ gained 3.69%.

AI Spending Fears Trigger 3.48% Plunge and Sidecar Halt
The momentum reversed sharply on October 30, with the KOSPI falling 3.48% to close near 5,730. The decline was triggered by global concerns over artificial intelligence spending returns, exacerbated by Alphabet’s 12% drop in US markets. The sell-off was so severe that a "sell sidecar" was triggered, temporarily halting programmatic selling for five minutes. Foreign investors turned back to net sellers, dumping 1.8 trillion won worth of shares, while retail investors attempted to absorb the selling pressure. SK hynix slid 7%, and Samsung Electronics fell 3%.

September Foreign Outflows Hit 26 Trillion Won
Despite the brief October rally, broader data shows foreign funds pulled 26 trillion won from Korean stocks and bonds in September, turning net sellers after months of inflows. This outflow was driven by geopolitical risks and growing skepticism about the profitability of AI investments. Global investment banks have been touting a Korea rally, but the data suggests foreign funds continue to exit despite bullish chatter.
Local view
Local media highlighted the fragility of the "Value-up" rally. Businesskorea noted that despite SK hynix’s positive earnings, the index failed to hold the 6,000 level on October 29, closing at 5,937 due to profit-taking and mixed reactions to other corporate news. Maeil Business Newspaper (MoneyToday) reported that the decline on October 30 was broad-based, with falling stocks outnumbering rising ones by a ratio of 7 to 1. Chosun Biz emphasized that even Samsung’s massive shareholder return plans could not sustain the rally, as foreign investors remained wary of global tech valuations.

Context & numbers
- KOSPI Close (Oct 30): ~5,730 (down 3.48%)
- KOSPI Close (Oct 28): 6,012.44 (up 6.63%)
- Foreign Net Flow (Oct 28): +$828 million (Net Buy)
- Foreign Net Flow (Oct 30): -1.8 trillion won (Net Sell)
- USD/KRW Exchange Rate: 1,334.3 won (Oct 30), strengthening 5.2 won from the previous session
- SK hynix Shareholder Return: 60 trillion won ($43.2 billion) plan announced Oct 28
On the radar
- US Midterm Elections Impact: Analysts warn that potential stricter data center regulations following US midterm elections could impact Korean semiconductor demand.
- Value-Up Programme Expansion: The FSC and KRX are preparing to publish a public list of low-PBR companies, a move designed to pressure firms into participating in the shareholder return program.
- Samsung Earnings Follow-up: Investors are watching for further details on Samsung’s 30 trillion won dividend plan, which was mentioned alongside SK hynix’s returns but has yet to fully materialize in market action.
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