The KOSPI index dropped more than 8% in early trading on November 6, falling below the 5,000 mark due to concerns over a slowdown in AI investment in the U.S. The circuit breaker was triggered for the 11th time this year in the securities market, while the KOSDAQ also experienced a decline of over 6%.
According to the Korea Exchange, as of 9:35 a.m., the KOSPI was down 446.50 points (8.29%) at 4,937.30. The index opened at 5,263.26, down 120.54 points (2.24%), before extending its losses.
As the KOSPI's decline exceeded 8%, a first-stage circuit breaker was activated, halting trading for 20 minutes. This marks the 11th circuit breaker of the year and the 17th in history, the first since October 15.
Foreign investors sold a net 133.1 billion won in the securities market, while individuals and institutions bought a net 42.6 billion won and 86.5 billion won, respectively.
Major stocks fell sharply, with Samsung Electronics down 8.44% and SK Hynix down 8.70%. Other significant declines included Samsung Electronics Preferred (-8.60%), SK Square (-10.01%), and Samsung Electro-Mechanics (-11.86%). Hyundai Motor fell 5.96%, KB Financial dropped 5.03%, Celltrion was down 3.02%, LG Energy Solution decreased by 1.88%, and Samsung Biologics fell 0.46%.
At the same time, the KOSDAQ index was down 43.01 points (6.34%) at 635.40, having opened at 654.43, down 23.98 points (3.53%), and also triggered a sell-side circuit breaker in early trading.
In the KOSDAQ market, individuals and institutions sold a net 39.5 billion won and 1.6 billion won, respectively, while foreign investors bought a net 39.5 billion won.
Among major KOSDAQ stocks, Alteogen fell 7.00%, EcoPro dropped 4.78%, EcoPro BM was down 6.47%, JUSUNG Engineering decreased by 6.20%, and Rainbow Robotics fell 7.17%. HLB was down 4.32%, Samchundang Pharmaceutical dropped 6.63%, Rino Industry fell 5.67%, Simtech decreased by 8.62%, and EoTechnics was down 5.85%.
Overnight, U.S. stocks fell sharply due to concerns over reduced AI investment stemming from data center regulations, with the Philadelphia Semiconductor Index dropping about 12%. KOSPI 200 night futures also showed a decline of over 7%.
Han Ji-young, a researcher at Kiwoom Securities, noted that the Philadelphia Semiconductor Index's 12% drop was driven by fears of reduced AI investment due to data center regulations. She added, "Following the decline in KOSPI 200 night futures, which fell over 7%, we expect increased volatility during the trading session today."
* This article has been translated by AI.
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