Seoul Shares Dip Over 3% on Tech Sell-Off Amid AI Concerns

On October 30, 2026, South Korean shares experienced a significant decline of over 3%, primarily influenced by a sell-off in technology stocks. The Korea Composite Stock Price Index (KOSPI) dropped by 206.92 points, closing at 5,730.74, after hitting a low of 5,599.42.

The sell-off was triggered by concerns surrounding the sustainability of artificial intelligence (AI) investments, following disappointing earnings reports from major tech companies. Notably, Alphabet, Google's parent company, saw its shares plunge more than 12% after reporting third-quarter revenues that fell short of market expectations.

Market analysts noted that the decline in tech stocks was exacerbated by a broader trend of investor caution regarding AI-related valuations. Kang Jin-hyuk, an analyst at Samsung Securities, stated, "Investors dumped shares of AI-related companies following a series of weaker-than-expected third-quarter earnings reports."

The trading volume was relatively low, with 212.76 million shares changing hands, and decliners outnumbering advancers significantly. Major companies like Samsung Electronics and SK Hynix saw their stock prices drop by 3.02% and 7.08%, respectively. Hyundai Motor and Kia also faced declines after revising their annual sales targets downward.

As the market closed, the Korean won strengthened against the U.S. dollar, trading at 1,334.3 won. Despite the overall market downturn, bond prices rose as yields fell, indicating a complex reaction to the current economic climate.