South Korea’s Stock Market Loses ₩130 Trillion as KOSPI Plunges 3.59%

South Korea’s stock market suffered a significant decline on Tuesday, November 3, with an estimated ₩130 trillion in market value reportedly wiped out as investors rushed to sell shares amid growing concerns over artificial intelligence (AI) spending.

The country’s benchmark Korea Composite Stock Price Index (KOSPI) dropped 3.59 per cent, losing 210.29 points to close at 5,648.79. The sharp decline reversed gains recorded during the previous trading session and reflected growing uncertainty among investors.

Technology and semiconductor stocks were among the hardest hit, with major companies including Samsung Electronics and SK hynix leading the downturn.

Samsung Electronics shares fell 4.15 per cent to 219,500 won, while SK hynix dropped 5.03 per cent to approximately 1.4 million won. Other technology-related companies also recorded losses as selling pressure spread across the market.

The sell-off was largely driven by renewed concerns about the enormous amounts of money global technology companies are investing in artificial intelligence infrastructure.

Investor confidence weakened following major funding announcements from US technology companies, particularly Oracle’s plan to raise approximately $20 billion through stock and bond offerings to finance its AI and cloud infrastructure expansion.

The development raised questions about whether the huge investments being made in AI will generate enough profits to justify their costs. These concerns affected South Korean semiconductor companies because Samsung Electronics and SK hynix are major suppliers of memory chips used in AI systems and data centres.

Foreign and institutional investors contributed significantly to Tuesday’s market decline. Foreign investors sold approximately ₩1.53 trillion worth of shares, while institutional investors offloaded about ₩514.7 billion.

Individual investors, however, moved in the opposite direction, purchasing approximately ₩1.66 trillion worth of shares as prices declined. The broader market also experienced widespread losses, with 656 stocks falling compared with 220 that recorded gains.

The sharp decline highlights the vulnerability of South Korea’s stock market to developments in the global technology industry.

With major semiconductor companies accounting for a significant portion of the market’s value, changes in investor confidence surrounding AI spending can have a considerable impact on the country’s financial markets.

Although demand for AI technology and advanced semiconductor chips remains an important growth driver, investors are increasingly concerned about the costs of expansion and how quickly companies can turn their investments into profits.

For now, market attention will remain on upcoming corporate earnings, global technology spending and investor confidence as South Korea’s stock market navigates the latest downturn.