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Kospi Falls 3.6% as AI Profit Fears Hit Samsung, SK Hynix
Why is the Kospi down today?
The Kospi (KS11) fell 3.59% to 5,648.79 on Tuesday as fears that AI spending will not pay off hit Samsung Electronics (005930.KS), down 4.2%, and SK Hynix (000660.KS), down 5%.
Key numbers
| Kospi close | 5,648.79-3.59% |
|---|---|
| SK Hynix close | 1,398,000 won-5.03% |
| Samsung Electronics close | 219,500 won-4.15% |
| Foreign net selling | 1.52T wonnet sellers |
| Oracle shares (Nov 2) | $20B raise-8.8% |
What happened
The Kospi (KS11) fell 3.59% to 5,648.79 on Tuesday as fears that AI spending will not pay off hit Samsung Electronics (005930.KS), down 4.2%, and SK Hynix (000660.KS), down 5%. Investors worry that the hundreds of billions of dollars Big Tech is spending on AI data centers will not bring in enough profit. On Monday, Oracle filed to raise $20 billion by selling new shares and bonds, and its own stock fell 8.8%. Foreign investors sold a net 1.5 trillion won of Korean shares.
Why it matters
The Kospi's fall shows how sensitive South Korea's stock market is to the AI trade, since Samsung Electronics and SK Hynix are among its biggest companies. Both reported record profits recently, yet their shares still dropped because investors now doubt that AI spending will keep paying off. That leaves chip suppliers exposed whenever big AI spenders, such as Oracle, need to borrow or sell shares to fund data centers.
Who this affects
- MarketbearishHigh impact
- Korean stock investors lose as the Kospi drops 3.6%.
- CompanybearishMedium impact
- Samsung and SK Hynix shareholders lose despite record profits.
- CompetitorsbearishMedium impact
- Taiwan rivals TSMC and MediaTek also fall.
- IndustrybearishMedium impact
- Chipmakers face doubts that AI spending will pay off.
Samsung Electronics vs SK Hynix, TSMC, MediaTek
| Samsung Electronics005930.KS | 219,500 won | -4.15% |
|---|---|---|
| SK Hynix000660.KS | 1,398,000 won | -5.03% |
| TSMC2330.TW | — | -1.9% (per [3]) |
| MediaTek2454.TW | — | -7.6% (per [3]) |
As of 2026-11-03
How we got here
Kospi falls 3.48% to 5,730.74 despite record Q3 profits at Samsung and SK Hynix
Oracle files $20B stock-and-bond sale; shares fall 8.8%; some reports say $10B
Wall Street: Nasdaq falls 1.1%, S&P 500 falls 0.5%
Kospi closes down 3.59% at 5,648.79 (AP cited 4% earlier in session)
What to watch
- Whether U.S. tech stocks keep falling, since they set the tone for Korean chip shares2026-11-04
- Whether foreign investors keep selling Korean shares after 1.5 trillion won of net sales2026-11-04
- How investors respond to Oracle's $20 billion share and bond saleQ4 2026
Educational content only. Not investment advice.
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