by Coinstrooper Crypto Articles
Quick Take
  • The slide gathered pace in July, when it lost 22%, and October has erased another 17% through Oct.
  • Memory chipmakers Samsung Electronics and SK Hynix accounted for 44% of the index in May.
  • However, the pair fell 19.74% and 28.38% between Oct.
  • Credit worries over AI spending grew after bond prices fell at cloud provider CoreWeave.

What Happened

Foreign investors turned net sellers, and the index fell seven straight sessions through Oct. 15.

Margin loans, which let investors buy shares with borrowed money, peaked at 38.63 trillion won on June 24.

Forced liquidations, which occur when brokers sell shares from investors who miss payment deadlines, topped 50 billion won for four straight sessions through Oct. 16.

Market Context

The Korea Composite Stock Price Index (KOSPI) fell 3.5% at Tuesday’s open as a chip-led AI sell-off drags on, cutting its 2026 gain to about 31% from roughly 116% at its June record close.

However, the pair fell 19.74% and 28.38% between Oct. 1 and Oct. 16, JoongAng reported. Credit worries over AI spending grew after bond prices fell at cloud provider CoreWeave.

Why It Matters

Memory chipmakers Samsung Electronics and SK Hynix accounted for 44% of the index in May.

Then stronger-than-expected US inflation data hit on Oct. 15, and the index fell 7.57% to 5,554.22.

Because the index leans on two stocks, its next leg may hinge on whether AI spending plans hold up and foreign selling slows.

Details

The index now sits about 39% below that peak. The slide gathered pace in July, when it lost 22%, and October has erased another 17% through Oct. 16.

Is the KOSPI Now a Bet on AI Spending?

Did Borrowed Money Turn a Pullback Into a Rout?

Institutional buying lifted the index 1.76% to 5,768.01 on Monday after a 3.17% lower open, before today’s slide.

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