Business · Markets · 22 hrs ago
KOSPI fell 17.65% in the third quarter after a sharp rise earlier this year
South Korea’s main stock index, the KOSPI, fell 17.65% between July 1 and September 30.
The drop followed a rise of more than 60% earlier this year, driven in part by strong demand for AI-related semiconductor shares.
China’s CSI 300 and Japan’s Nikkei also fell in the third quarter, but by less, while the S&P 500 and Nasdaq 100 rose.
Higher oil prices, rising interest rates and worries that the semiconductor boom had peaked weighed on markets.
Foreign investors also sold South Korean shares, and average daily KOSPI trading value fell sharply from June to September.
Investors are now looking for signs of a rebound, including stronger company earnings and continued demand for memory chips used in AI systems.
The US midterm elections and changes in oil prices and interest rates are also seen as important factors for the market in the final quarter.
The KOSPI fell 17.65% between July 1 and September 30, after rising about 60% earlier in the year.
The decline was steeper than those of China’s CSI 300 and Japan’s Nikkei 225, while the US S&P 500 and Nasdaq 100 rose.
The article cites higher oil prices and interest rates, worries about semiconductor earnings, and weaker investor sentiment among factors weighing on the market.
The index remained more than 62% above its level at the end of the previous year.
Analysts said a recovery could depend on corporate earnings, semiconductor demand and whether oil prices and interest rates stabilize.
- Who
- South Korea’s KOSPI and investors in the Korean stock market.
- What
- The KOSPI fell 17.65% in the third quarter, following a sharp rise earlier in the year.
- When
- From July 1 to September 30. The article was published on October 11, 2026.
- Where
- South Korea’s stock market.
- Why
- The article cites higher oil prices and interest rates, concerns about semiconductor earnings, weaker investor sentiment and foreign investors’ net selling.
This story does not have two clearly opposing sides.
Current liquidity in the Korean stock market has dried up compared with the first half of the year.
Rather than fundamental factors, investor sentiment has been damaged because many individual investors have been in loss territory since the weak market began in June, while foreign investors’ net selling has continued.
In five of the six midterm election cases since 2000, the S&P 500 recorded positive returns through year-end, averaging +3.6%.
If there is no further sharp rise in oil prices and interest rates, the market’s direction is upward.
The KOSPI rose about 60% as AI semiconductor stocks rallied.
The KOSPI reached a closing high for the year of 9,114.55.
The KOSPI stood at 8,303.41 at the start of the period measured in the article.
The index fell as the AI rally faded and selling focused on memory semiconductor stocks; it briefly dropped to 5,262.77 intraday.
The KOSPI closed at 6,838.04, down 17.65% from July 1.
The KOSPI closed at 6,625.93, down 2.62% on the day.
- KOSPI third-quarter decline
- 17.65%
- KOSPI, July 1
- 8,303.41
- KOSPI, September 30
- 6,838.04
- China CSI 300, third-quarter change
- Down 12.13%
- Japan Nikkei 225, third-quarter change
- Down 4.74%
- US S&P 500, third-quarter change
- Up 2.25%
Sources
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