Seoul Stocks Plunge Nearly 4% Amid AI Concerns and French Unrest
South Korean shares fell nearly 4% as investors reacted to AI-related worries and protests in France.
South Korean shares fell nearly 4% as investors reacted to AI-related worries and protests in France.
On October 20, 2026, South Korean stocks experienced a significant drop of nearly 4%, primarily driven by investor concerns over the artificial intelligence (AI) sector and ongoing unrest in France.
The benchmark Korea Composite Stock Price Index (KOSPI) plummeted by 215.27 points, or 3.73%, closing at 5,552.74. This decline followed a brief period of gains, as investors sought to capitalize on recent increases in major chip stocks.
Market analysts, including Lee Kyoung-min from Daishin Securities, noted that unresolved issues surrounding credit risks and profitability in AI investments have contributed to the market's volatility. "Profit-taking emerged following the previous session's gains, sending the market back into negative territory," Lee stated.
The trading session saw a light volume of 259.75 million shares, with decliners outnumbering advancers significantly. Major technology stocks, including Samsung Electronics and SK Hynix, faced sharp sell-offs, further exacerbating market losses.
The Korean won, however, showed some strength against the U.S. dollar, trading at 1,328.1 won. Bond prices increased, indicating a flight to safety among investors amid the prevailing market uncertainty.
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