Seoul Stocks Plunge for Second Day Amid AI Investment Fears

On November 6, 2026, Seoul's stock market experienced another sharp decline, with the Korea Composite Stock Price Index (KOSPI) falling 6.02% to close at 5,059.69. This marks the second consecutive day of losses, reflecting heightened fears regarding the impact of the U.S. midterm elections on AI investments.

The market volatility was exacerbated by concerns that a Democratic-controlled Congress might slow down the construction of data centers crucial for artificial intelligence. Analysts noted that these fears have spread throughout the entire AI value chain, including semiconductor stocks.

Lee Kyoung-min, an analyst from Daishin Securities, stated, "Concerns that the U.S. Congress could further tighten regulations on AI data centers were behind the market plunge." He added that while the market reaction seems excessive, the potential for a complete halt on data center construction remains low.

The KOSPI index opened with a significant drop, briefly dipping below 5,000 points, prompting a temporary trading suspension. Major companies like Samsung Electronics and SK Hynix saw substantial declines, with Samsung dropping 6.35% and SK Hynix plummeting 10.44%.

In contrast, some IT shares like Naver and Samsung SDS managed to gain, reflecting a mixed performance across sectors. The Korean won also weakened against the U.S. dollar, trading at 1,356.6 won per dollar, indicating further economic pressures.