Seoul Stocks: KOSPI and KOSDAQ Daily — 2026-10-24
The KOSPI experienced extreme volatility this week, swinging by more than 3% in both directions for three consecutive sessions as foreign investors aggressively traded semiconductor stocks. The index closed at 5,550.30 on October 23 after a dramatic intraday reversal from a 4% drop, driven by SK Hynix's rebound following reports that it halted plans to list its subsidiary Solidigm in the US. Amidst renewed skepticism over AI spending and a surge in foreign net buying of Samsung Electronics and SK Hynix, the market remains sensitive to global semiconductor trends and upcoming US Big Tech earnings.
Seoul Stocks: KOSPI and KOSDAQ Daily — 2026-10-24
Top developments
Extreme Volatility and Intraday Reversals
The KOSPI has shown unprecedented instability, swinging by more than 3% in both directions for three consecutive sessions, with volatility concentrated in large-cap semiconductor stocks. On October 23, the index opened down more than 4% but staged a sharp intraday reversal, closing up 0.30% at 5,550.30. This recovery was largely driven by SK Hynix, which rebounded after abandoning plans to list its subsidiary Solidigm in the US, a move that reduced dilution fears and lifted sentiment.
Foreign Investors Lead Semiconductor Rebound
Foreign investors resumed net buying of major semiconductor stocks, purchasing approximately 1 trillion won worth of Samsung Electronics and SK Hynix shares, which helped the KOSPI rebound by 3.29% on October 21. This surge followed a period of heavy selling, with foreigners having sold over 13 trillion won of these two stocks earlier in October. The return of foreign capital was partly supported by strong results from US chipmaker Super Micro Computer, which lifted sentiment for the sector.
AI Spending Skepticism Weighs on Sentiment
Despite the rebound, market uncertainty remains high due to renewed skepticism over the sustainability of US artificial intelligence (AI) spending. On October 22, the KOSPI plunged 3.73% as the Philadelphia Semiconductor Index fell 6.72%, dragging down Korean chip stocks. Analysts note that the KOSPI's 2026 gain has shrunk from 116% to 31% amid these doubts. KB Securities warned that a "W-shaped" correction could push the index below its earlier low, with the second bottom potentially being lower.
Retail Investors Return to US Markets
As KOSPI volatility returns, Korean retail investors are increasingly shifting their attention back to US stocks. Data shows that individual investors who reduced overseas exposure during the KOSPI's record run in the first half are now turning back to Wall Street, indicating a potential outflow of domestic retail capital. This trend suggests that domestic retail participation in the KOSPI may remain cautious until volatility stabilizes.
Local view
Local media outlets highlight the dramatic nature of the recent market swings. Businesskorea described the October 23 session as a "dramatic rebound" where the KOSPI overcame US tech stock shocks and intraday selling pressure to close higher. Chosun Biz noted that the "AI jitters" and SK Hynix's buyback halt were key drivers of the 3% drop on October 22, emphasizing the market's sensitivity to global tech narratives. Hankyung reported that the foreign net buying of 1 trillion won in Samsung and SK Hynix was a critical factor in the KOSPI's rebound, marking a shift in foreign investor behavior.
Context & numbers
- KOSPI Closing Price (Oct 23): 5,550.30, up 16.53 points (0.30%) from the previous day.
- Foreign Net Buying (Oct 21): Approximately 1 trillion won in Samsung Electronics and SK Hynix.
- Foreign Net Selling (Oct 1-22): Over 17 trillion won in total, with about 77% concentrated in Samsung Electronics and SK Hynix.
- US Big Tech Earnings: Alphabet, Microsoft, and Amazon are scheduled to report earnings on October 29 and 30, which is expected to influence the direction of Korean semiconductor stocks.
- Bank of Korea: The central bank held its policy rate at 3.00%, in line with expectations.
On the radar
- US Big Tech Earnings: Investors are closely watching the earnings reports from Alphabet, Microsoft, and Amazon in late October, as these will provide cues on the sustainability of AI spending and semiconductor demand.
- SK Hynix and Samsung Earnings: The market awaits the earnings reports from SK Hynix and Samsung Electronics, which are expected to release details on their performance and future outlooks, particularly regarding high-bandwidth memory (HBM) demand.
- Solidigm IPO Status: While SK Hynix halted its US listing plans for Solidigm, any further developments or clarifications regarding this subsidiary could impact SK Hynix's stock price and broader market sentiment.
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