The KOSPI index is experiencing a decline of over 3% in early trading on October 30, influenced by a sharp drop in U.S. tech stocks. Major semiconductor companies, including Samsung Electronics and SK Hynix, are contributing to the index's downturn.
According to the Korea Exchange, as of 9:18 a.m., the KOSPI index has fallen by 216.54 points (3.65%) to 5721.12 compared to the previous trading day.
In the securities market, individual investors are net buyers, purchasing 227.2 billion won. In contrast, foreign and institutional investors are net sellers, offloading 105.2 billion won and 148.7 billion won, respectively, which is dragging down the index.
Most of the top market capitalization stocks are in decline. Samsung Electronics is trading at 224,500 won, down 3.23%, while SK Hynix has plummeted 6.36% to 1,429,000 won.
Other declining stocks include Samsung Electronics Preferred (-4.30%), SK Square (-5.67%), Samsung Electro-Mechanics (-6.57%), Hyundai Motor (-2.05%), KB Financial (-2.42%), and Samsung Life (-3.60%). Conversely, LG Energy Solution (0.84%) and Samsung Biologics (0.95%) are seeing gains.
The KOSDAQ index is also experiencing a decline. At the same time, the KOSDAQ index has dropped by 22.50 points (2.99%) to 730.73 compared to the previous trading day.
In the KOSDAQ market, individual investors are net buyers, acquiring 73.2 billion won, while foreign and institutional investors are net sellers, selling 32.2 billion won and 31.1 billion won, respectively.
Among the top market capitalization stocks, Alteogen (-1.48%), EcoPro (-0.14%), EcoPro BM (-0.65%), JUSUNG Engineering (-3.45%), Rainbow Robotics (-4.10%), and HLB (-0.50%) are all declining. Notably, semiconductor-related stocks such as IOTech (-5.78%), Simtech (-7.29%), and Wonik IPS (-6.15%) are experiencing significant losses.
The weakness in the domestic stock market is attributed to a decline in investor sentiment following the drop in U.S. tech stocks overnight. On October 29, the Nasdaq Composite fell by 1.38%, and the Philadelphia Semiconductor Index dropped by 1.42%. Alphabet, Google's parent company, saw a 12.64% decline due to disappointing earnings and concerns over the profitability of AI investments.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The domestic market started to decline following the after-hours stock drops of Amazon and Intel, but during the day, we may see a differentiation in stocks based on individual performance."
He added, "While the demand for AI servers remains robust, concerns about the slowdown in investment profitability and business-to-consumer (B2C) demand are also becoming more pronounced. We need to prepare for increased volatility as we digest both upward and downward factors for the time being."
Furthermore, he noted that Samsung Electronics and SK Hynix mentioning a continued memory supply shortage until 2028 and the expansion of long-term supply contracts alleviates concerns about peak industry conditions. Given the recent sharp decline in stock prices, the likelihood of retesting previous lows is considered low.
* This article has been translated by AI.
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