KOSPI plunges 3.65% despite Samsung's record earnings

KOSPI slid 3.65 percent Monday, falling below 6,400 as its losing streak stretched to four consecutive sessions.

The benchmark index has shed 619.50 points, or 8.85 percent, since Oct. 6. After losing the 7,000 mark earlier in that stretch, it breached both the 6,500 and 6,400 levels on Monday.

Persistent selling by foreign investors has weighed on KOSPI, leaving it struggling to recover even after Samsung Electronics reported record earnings last Thursday.

After opening 47.76 points, or 0.72 percent, lower at 6,578.17, the index extended its losses to close at 6,384.24, down 241.69 points, or 3.65 percent. It marked the benchmark’s biggest daily percentage decline since Sept. 2, when it fell 3.99 percent.

Samsung Electronics and SK hynix, the market’s two leading chip stocks, dropped 4.39 percent and 4.52 percent, respectively, dragging KOSPI lower.

“The two chip heavyweights came under pressure as investors weighed renewed concerns about an artificial intelligence (AI) bubble following reports about OpenAI,” said Kim Seok-hwan, an analyst at Mirae Asset Securities.

Reports on Thursday (local time) that OpenAI’s annual revenue was $20 billion lower than previously reported sent the Nasdaq Composite down 1.25 percent.

The revenue gap, however, reflected different accounting methods rather than a drop in sales. The Nasdaq’s 0.64 percent recovery the next day suggests that OpenAI-related concerns alone do not fully explain KOSPI’s continued weakness.

KOSPI has remained under pressure even as analysts praised Samsung’s third-quarter results, suggesting that solid earnings alone may no longer satisfy investors. Analysts said investors also want greater confidence in the durability of the semiconductor supercycle and clearer evidence of competitiveness in high-bandwidth memory.

Upcoming earnings reports and outlooks from major chipmakers could provide the support needed for a KOSPI rebound. ASML and TSMC are scheduled to report results this week, followed by SK hynix on Oct. 27 and Samsung Electronics’ conference call on Oct. 29.

Lee Jae-won, an analyst at Yuanta Securities, said Korea’s earnings growth depends largely on memory chips, whereas U.S. market leaders span a broader range of AI services and infrastructure.

“Although both markets stand to gain from rising global AI spending, their companies generate revenue differently and occupy distinct positions in the value chain,” Lee said.

He cautioned, however, against viewing the divergence as evidence that Korean chipmakers are losing competitiveness.

“Investors need to examine changes in global portfolio allocations, Korean semiconductor stocks’ relative valuations and differing expectations for future profit growth,” he said.

The tech-heavy Kosdaq also plunged, closing at 849.19, down 43.08 points, or 4.83 percent, after opening 6.74 points, or 0.76 percent, lower at 885.53.

Meanwhile, the won strengthened in the Seoul foreign exchange market, closing onshore trading at 1,335.1 won per dollar. The won-dollar exchange rate fell 7.7 won from the previous session.