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Kospi Falls 20% in October After Chip Selloff
Why did the Kospi fall 20% in October?
Kospi (^KS11) fell 20% in October and closed Monday at 5,469.47 after a chip selloff driven by rate-hike fears and AI-funding worries.
Key numbers
| Kospi close, Oct. 26 | 5,469.47-1.46% (-80.83 pts) |
|---|---|
| Kospi since Oct. 2 | 5,550.30-20.8% to Oct. 23 close from 7,003.74 |
| Reported SK Hynix special dividend | ₩16T (~$12.1B)Unconfirmed by company |
| SK Hynix buyback approved Aug. 19 | ₩40T (~$30B)3.3% of shares, per [4] |
| Foreign net selling on Monday | ₩695.5BInstitutions bought ₩611B |
| S&P 500 comparison | -2.0%Oct. 6 to Oct. 22 |
What happened
Kospi (^KS11) fell 20% in October and closed Monday at 5,469.47 after a chip selloff driven by rate-hike fears and AI-funding worries. Big chipmakers drove the drop, while the US S&P 500 fell only about 2% over a similar period. On Monday, a Korean newspaper reported that SK Hynix is weighing a one-time extra payout to shareholders (a special dividend) of about 16 trillion won ($12 billion), funded by selling its Kioxia stake. SK Hynix has not confirmed the amount and says it is reviewing options, with details due Wednesday, Oct. 28.
Why it matters
The Kospi's 20% October slide shows how much South Korea's stock market depends on a few chipmakers tied to the AI boom. When those shares fall, the whole index falls with them. A big payout from SK Hynix would show a company with plenty of cash, about 69 trillion won net as of June, handing some back to owners while prices are weak. Wednesday's announcement will show whether the report is accurate.
Who this affects
- MarketbearishHigh impact
- Korean stock investors face heavy losses as foreigners keep selling.
- CompanybullishMedium impact
- SK Hynix shareholders could gain from a possible special payout.
- CompetitorsbearishMedium impact
- Samsung Electronics fell 1.16% Monday while SK Hynix held steady.
- IndustrybearishHigh impact
- Chip stocks stay under pressure from rate and funding worries.
Kospi vs Nikkei 225, S&P 500
| Kospi^KS11 | 5,469 | -1.46% | -20.8% |
|---|---|---|---|
| Nikkei 225^N225 | 62,190 | -0.8% | — |
| S&P 500^GSPC | 7,663 (Oct. 22) | — | -2.0% |
As of 2026-10-26
How we got here
Kospi closes at 7,003.74, the starting point for October's slide.
Kospi closes at 5,550.30, down 20.8% from Oct. 2.
Dong-A Ilbo reports SK Hynix weighs ₩16T special dividend; company says it is reviewing options.
Kospi closes down 1.46% at 5,469.47 as foreigners sell ₩695.5B.
What to watch
- SK Hynix third-quarter results and shareholder-return details, including any special dividend2026-10-28
- Samsung Electronics third-quarter results, a key test for chip earnings2026-10-29
- US Federal Reserve rate decision, as rate-hike fears have weighed on chip stocksWeek of 2026-10-26
Educational content only. Not investment advice.
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