{
  "id": 14405947,
  "title": "Why Korea’s KOSPI is tumbling like no other index",
  "url": "https://urgent.news/2026/10/14/why-koreas-kospi-is-tumbling-like-no-other-index-14405947",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-14T06:39:54.000Z",
  "source": {
    "name": "Hankyoreh",
    "slug": "hankyoreh",
    "url": "https://www.hani.co.kr/arti/english_edition/e_business/1282388.html"
  },
  "original_language": "en",
  "account": "The Korea Stock Price Index (KOSPI) experienced a significant drop of 5.46% last Tuesday, closing at 6,035.35, with analysts attributing the fall to several factors. There was no singular event that caused the sudden decline; rather, a combination of elements contributed to the market's plunge. First, the announcement by Chinese chipmaker ChangXin Memory Technologies (CXMT) about its technological advancements and plans to launch new server products before the end of the year raised fears about increased competition in the semiconductor sector. This news, combined with doubts about the outlook for the artificial intelligence (AI) industry, added to the pressure on the KOSPI, which has a heavy exposure to semiconductors.\n\nAdditionally, the KOSPI's prolonged sideways movement and a shortage of buyers played a role in the market's volatile reaction. Foreign capital outflows from the market have been persistent, with foreign investors recording net sales of 203 trillion won worth of domestic stocks this year, significantly outpacing their purchases. Foreign investors have also been particularly active in selling stocks of major semiconductor companies, including Samsung Electronics and SK Hynix, with sales of 87 trillion won and 89 trillion won, respectively. The recent completion of share buyback programs by Samsung Electronics and SK Hynix has left the market particularly vulnerable to further downward pressure.\n\nTwo key developments related to AI appeared to weigh on the market last Tuesday. The first was CXMT's announcement, which heightened concerns that Chinese chipmakers could soon close the technology gap with major memory chipmakers like Samsung Electronics, SK Hynix, and Micron. This could lead to shrinking market shares and operating profits for these companies in the coming years. The second trigger was comments from the CEOs of Broadcom and Intel, who mentioned difficulties in raising capital as a potential constraint on AI growth. With high interest rates already making stocks less attractive, these doubts about the profitability and financing of AI further compounded the pressure on the KOSPI.\n\nAnalysts were nearly unanimous in pointing to the lack of buying support as the primary reason for the stock market's decline. Investor sentiment has grown increasingly fragile, and trading activity has dried up significantly, leaving little buying support to counter downward price pressure. According to Han Ji-young, an analyst at Kiwoom Securities, investor deposits, which represent cash reserves for stock purchases, have significantly decreased from their mid-June peak of 130 trillion won to 100 trillion won by Monday. Given the current state of the market, key questions remain about the sustainability of earnings forecasts for the semiconductor industry and whether foreign investors will return to the market. If foreign selling persists and earnings projections see downward revisions, analysts warn that investors will need to reassess their medium-term investment strategies.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Hankyoreh",
        "title": "Why Korea’s KOSPI is tumbling like no other index",
        "url": "https://urgent.news/2026/10/14/why-koreas-kospi-is-tumbling-like-no-other-index",
        "published": "2026-10-14T06:31:54.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}