Seoul Stocks Slide Over 3% on Profit-Taking Amid AI Concerns
South Korean shares fell sharply as investors took profits amid ongoing AI worries.
South Korean shares fell sharply as investors took profits amid ongoing AI worries.
On October 22, 2026, South Korean stocks experienced a significant decline of over 3% as investors engaged in profit-taking, particularly in major chip shares. The benchmark Korea Composite Stock Price Index (KOSPI) dropped by 201.8 points, or 3.52%, closing at 5,533.77. This downturn followed a brief recovery in the previous session, highlighting the volatility in the market.
The KOSPI had opened lower but briefly turned positive before resuming its downward trend. Analysts noted that despite strong earnings from companies like Meta Platforms, concerns about profitability in the AI sector persisted. Lee Kyoung-min, an analyst at Daishin Securities, stated, "Although Meta and Tesla reported earnings that exceeded market expectations, their results failed to ease concerns over profitability amid massive AI investments."
Technology shares led the decline, with Samsung Electronics falling 4.03% and SK Hynix dropping 5.49%. The overall trading volume was light, indicating cautious investor sentiment. The Korean won strengthened slightly against the U.S. dollar, reflecting mixed market dynamics.
As the market continues to grapple with uncertainties surrounding AI investments, the outlook remains cautious. Investors are closely monitoring developments in the tech sector and broader economic indicators.
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