Kospi Opens 3.17 Percent Lower as US Tech Sell-Off Hits Seoul Chips

Updated 01:50 UTC, October 19, 2026: Taiwan's Taiex fell 1.51 percent to 46,399.63 in Monday trading, extending the slide across Asia. The index opened down 1.42 percent at 46,440.75, Mint reported, after closing on Friday at 47,111.26. Taipei took the same pressure hitting Seoul and Tokyo. Investors doubt whether heavy spending on AI infrastructure will pay off, after Wall Street tech stocks fell on Friday and the Philadelphia Semiconductor Index logged an eighth straight decline, with memory and chip shares hit hardest, BigGo Finance reported.

Updated 01:13 UTC, October 19, 2026: The slide spread across Asia after the open and then eased in Seoul. Japan's Nikkei 225 fell 2.0 percent, after losing 5.4 percent last week, Reuters reported, and at one point it was down 2.2 percent and back below 64,000. The Kospi narrowed its loss to 1.6 percent, having shed more than 14 percent last week, and a separate intraday report put the Kospi loss at 1.0 percent after the early 3.17 percent fall. MSCI's broad index of Asia Pacific shares outside Japan eased 0.3 percent. Oil also eased, with Brent futures down 1.6 percent at 108.06 dollars a barrel and US crude down 0.7 percent at 100.70 dollars, which helped US stock futures and bonds. S and P 500 futures rose 0.5 percent and Nasdaq futures rose 0.8 percent, while the 10 year Treasury yield fell 3 basis points to 5.0645 percent. Reuters noted that the Philadelphia Semiconductor Index fell 11.4 percent last week, its longest losing streak since 2008, and that Iran had reported another tanker hitting a mine in the Strait of Hormuz.

Developing story. Updated 00:42 UTC, October 19, 2026.

South Korean stocks opened sharply lower on Monday, October 19, as a technology sell-off on Wall Street on Friday hit Seoul at the start of a new week. The benchmark Kospi opened down 179.64 points, or 3.17 percent, at 5,488.41, Yonhap reported through Korea JoongAng Daily.

The smaller Kosdaq index opened down 21.72 points, or 2.73 percent, at 773.06, the Seoul Economic Daily reported.

Chip giants lead the fall

Semiconductor stocks took the hardest hit before the open. According to the Korea Exchange, as cited by Aju Press, Samsung Electronics was trading at 203,000 won at 8:17 a.m., down 5.80 percent from the previous trading day. SK hynix fell 6.84 percent to 1,185,000 won, and SK Square dropped 7.40 percent to 726,000 won.

Samsung and SK hynix sit at the centre of South Korea's market and of the global memory chip trade. When investors turn against artificial intelligence stocks, both names move first, and the Kospi moves with them.

What Wall Street did on Friday

On Friday, October 16, US technology stocks fell again. The Nasdaq Composite closed down 2.15 percent at 26,140.03. The S and P 500 fell 1.09 percent to 7,659.44, and the Dow Jones Industrial Average fell 0.34 percent to 52,002.41. The Philadelphia Semiconductor Index dropped 3.83 percent, Aju Press reported. Korea JoongAng Daily put the Nasdaq fall at 2.14 percent and the Dow fall at 0.34 percent.

At the centre of the worry is money. AI infrastructure firms have borrowed heavily to build data centres, and investors now ask whether that spending will earn enough profit to justify it. Aju Press pointed to credit concerns around firms such as CoreWeave, which expanded data centre investment through large borrowings.

A rebound that lasted one day

The weak open wiped out Friday's recovery in Seoul. On Friday, October 16, the Kospi rose 2.05 percent to close at 5,668.05, snapping a seven session losing streak, Korea JoongAng Daily reported.

Analysts in Seoul say sentiment has cooled after last week's slide. Han Ji-young of Kiwoom Securities, quoted by Aju Press, said investors now lean toward selling on rebounds rather than buying falls, and put the Kospi range for this week at 5,200 to 5,900. Aju Press also reported that Nasdaq futures rose about 0.6 percent on the morning of October 19, a bounce after last week's sharp falls that may limit the drop as the day goes on.

What comes next this week

Earnings will test the mood. In the United States, Tesla, Meta Platforms and Lam Research report this week, and their results will show whether heavy AI spending is turning into profit. In South Korea, major company earnings, a Bank of Korea monetary policy committee meeting, and export figures through October 20 are also due. Investors also face uncertainty over the US interest rate outlook and the November 3 US midterm elections, analysts told Yonhap.

This is a developing story. The Orbit Post will update this article as the Seoul session moves and closing figures are confirmed.