Seoul’s benchmark KOSPI index closed up 2.24 percent at 5,859.08 on Monday, clawing back much of the ground lost in a sharp sell-off three sessions earlier, according to Yonhap. The rebound came as investors snapped up technology shares that had been sold off heavily, even though broader unease about the payoff from artificial intelligence spending had not disappeared.
- KOSPI closed up 128.34 points, or 2.24 percent, at 5,859.08 on Monday, after plunging more than 3 percent the previous Friday, according to Yonhap
- Institutional investors were net buyers while foreign and retail investors were net sellers; exact figures differ slightly between Yonhap/Korea Herald (1.23 trillion won institutional buying) and Korea Times (1.36 trillion won)
- SK hynix gained 3.81 percent to 1,472,000 won and Samsung Electronics rose 1.78 percent to 229,000 won, Yonhap reported
- South Korea's October exports rose more than 90 percent year-on-year, with chip shipments up 259 percent, according to Yonhap
- The rebound followed a sharp sell-off in U.S. chip stocks, including a 28 percent drop in Intel shares after weak guidance, the Korea Times reported
What happened
The index gained 128.34 points and briefly touched 5,910.83 during the day, Yonhap reported. That followed a drop of more than 3 percent on the previous Friday. Trading volume was described as light, at 186.4 million shares worth 14.9 trillion won (roughly $11.1 billion), with winning stocks outnumbering losers by 651 to 229.
Sources differ slightly on the exact flow of money. Yonhap and the Korea Herald reported that foreign and retail investors together sold a net 1.72 trillion won in shares, while institutions bought a net 1.23 trillion won. The Korea Times put institutional buying at 1.36 trillion won, with foreign investors selling 43.09 billion won and retail investors selling 1.41 trillion won. Either way, all three outlets agree that institutional buying was the key force pulling the index back up after it opened the session lower.
Chip and defense-linked names led the gains. SK hynix rose 3.81 percent to 1,472,000 won and Samsung Electronics gained 1.78 percent to 229,000 won, Yonhap reported. SK Square advanced 5.91 percent after outlining plans to return at least 4.3 trillion won to shareholders from dividends tied to SK hynix, according to the Korea Times. Shipbuilder Hanwha Ocean jumped 9.8 percent after its parent, Hanwha Aerospace, said it became the first South Korean company to deliver a medium landing ship to the U.S. Navy, Yonhap noted. Not every large stock advanced: KB Financial fell 1.35 percent and Samsung SDI slipped 0.92 percent.
Why it matters
The rebound shows how closely South Korea’s stock market is tied to the fortunes of its semiconductor exporters. Daishin Securities analyst Lee Kyoung-min argued that investors had reassessed disappointing U.S. chip-sector earnings and refocused on the strength of Korea’s own memory chip makers, according to Yonhap. Lee described the Korean market as trading at a “historic discount,” suggesting room for recovery if earnings remain solid.
That view was reinforced by trade data: South Korea’s October exports rose more than 90 percent from a year earlier, driven largely by chip demand, with chip shipments alone up 259 percent year-on-year, Yonhap reported. The Korea Times added that total October shipments reached $115.3 billion.
Background
The swings in Seoul followed turbulence in U.S. markets, where chip stocks were hit hard after Intel issued weaker-than-expected sales guidance for the fourth quarter, citing softening PC demand, according to the Korea Times. Intel shares fell roughly 28 percent and the Philadelphia Semiconductor Index dropped 7.2 percent in the same session. Investors have been debating whether the earnings miss reflects fading demand for memory chips broadly or simply rising costs squeezing PC makers’ margins, a distinction the Korea Times said is increasingly favoring the latter interpretation. This broader debate over whether heavy AI-related investment will pay off has been unsettling markets globally in recent sessions.
What to watch
The Korea Times reported that analysts expect volatility to continue this week, pointing to upcoming U.S. midterm elections and an employment report as potential catalysts. Our read: with institutional buyers stepping in while foreign and retail investors pulled back, the durability of this rebound may depend on whether upcoming U.S. economic and political signals ease or deepen worries about AI-related tech valuations.
Frequently asked questions
How much did the KOSPI rise on Monday?
The index closed up 2.24 percent, or 128.34 points, at 5,859.08, according to Yonhap, after rising as high as 5,910.83 during the session.
Why did the market fall on Friday before this rebound?
The KOSPI had plunged more than 3 percent on Friday amid a rout in U.S. semiconductor stocks, including a sharp drop in Intel shares after weak sales guidance, as reported by the Korea Times.
Which investors drove the Monday rebound?
Institutional investors were net buyers of Korean shares, while foreign and retail investors were net sellers, according to Yonhap and the Korea Times, though the two outlets cite slightly different net figures.
Sources
- The Korea Herald: Seoul stocks rebound over 2% on bargain hunting
- Yonhap News: (LEAD) Seoul stocks rebound over 2 pct on bargain hunting
- The Korea Times: KOSPI rallies over 2% as investors look past US tech rout
- Yonhap News: Seoul stocks rebound over 2 pct on bargain hunting
This article was prepared with AI assistance from the reports listed above and automatically checked against them. See About for how we work.