Kospi Falls 1.31%, Slips Back Below 5,700 Despite Rebound in US Tech Stocks

US technology stocks rebounded overnight, but South Korea’s stock market opened lower, sending the Kospi back below the 5,700 level.

As of 9:02 a.m. on Oct. 20, the Kospi was trading at 5,692.46, down 1.31% from the previous session. The benchmark slipped back below 5,700 for the first time in two trading days since Oct. 18.

Major technology stocks on Wall Street rebounded across the board overnight as bargain buying emerged. The Philadelphia Semiconductor Index also turned higher, ending an eight-session losing streak. CoreWeave, an artificial intelligence infrastructure company, fell 0.4%, underscoring lingering concerns about credit risk surrounding the AI industry.

In Seoul, foreign and institutional investors were driving the decline with simultaneous selling. On the benchmark KOSPI market, foreign investors were net sellers of 210 billion won, while institutions offloaded a net 350 billion won. Retail investors, by contrast, were net buyers of 560 billion won, absorbing the supply.

Large-cap stocks were mostly weaker as well. Samsung Electronics fell 1.15% and SK Hynix dropped 3.21%, putting pressure on the index. Hyundai Rotem, a defense-related stock, tumbled more than 8% on expectations that its third-quarter earnings will miss market forecasts.

The Kosdaq market was also lower. At the same time, the Kosdaq index was down 1.19% at 799.29, slipping below the 800 mark. Alice, which debuted on the Kosdaq that day, was trading about 26% below its IPO price on its first day.