The Korea Composite Stock Price Index (KOSPI) experienced a sharp decline on Thursday, falling 7.28% to 5,571.27 by 10:13 a.m. Seoul time. This drop marks the sixth consecutive session of losses for the index, which is now approximately 40% below its peak recorded on June 19. Despite this downturn, the index maintains a 31.87% gain for 2026.
The market volatility was triggered by US inflation data, with the Consumer Price Index reaching 3.7% in September, exceeding the expected 3.6%. Core inflation also surpassed forecasts at 2.6%. Following the initial 5.59% drop at the opening, a five-minute program trading pause, known as a sidecar, was activated at 9:08 a.m. to block automated sell orders.
Tech stocks faced significant pressure, with Samsung Electronics shares falling 6.03% and SK Hynix dropping 7.61%. Both companies are also contending with competitive pressure from China’s ChangXin Memory Technologies. Foreign investors were net sellers, offloading ₩285.6 billion in shares early in the session.
Market sentiment is currently weighed down by skepticism regarding AI and concerns over potential Federal Reserve interest rate hikes at the upcoming October 27–28 meeting. Higher rates could increase borrowing costs for firms financing AI data centers. Meanwhile, Brent crude prices remain near $106 per barrel amid ongoing geopolitical tensions.
