Business · Markets · 2 hrs ago
Experts say KOSPI rebound depends on AI profits and foreign buying
South Korea’s KOSPI has fallen sharply, unsettling individual investors.
Doubts about AI investment returns, higher US interest rates and foreign selling have combined to pressure the market.
The concerns include whether spending on AI will lead to lasting profits and whether that spending will support demand for semiconductors.
Experts differ on the timing: one expects weakness into early November before a possible year-end rally, while others say more evidence is needed.
A recovery depends on stronger signs of AI profitability and semiconductor earnings, along with foreign investors returning as buyers.
Big tech results in late October and foreign trading flows are among the signals experts say investors should watch.
If interest-rate concerns and worries about AI spending persist, they warn that market swings could continue and any rebound may be limited.
South Korea’s KOSPI rebound depends on renewed confidence in AI investment profits and a return of foreign buying, experts said.
The market fell amid doubts about AI investment returns, higher US interest rates and continued foreign selling.
Experts said a recovery could follow if AI and semiconductor earnings prospects hold up and foreign investors resume buying.
They differed on timing, with one forecast calling for weakness into early November before a possible year-end rally.
The outlook could worsen if AI investment concerns and high interest rates persist.
- Who
- Three analysts: Park Yeon-ju of Mirae Asset Securities, Yoo Jong-woo of Korea Investment & Securities, and Vincent (Kim Doo-eon) of Hana Securities.
- What
- They assessed the KOSPI’s decline and the conditions for a rebound, including AI profitability, semiconductor earnings and foreign buying.
- When
- The article was published on October 21, 2026; it refers to a market decline on October 20.
- Where
- South Korea’s stock market.
- Why
- Doubts about AI investment returns, higher US interest rates and foreign selling weighed on the market.
This story does not have two clearly opposing sides.
The KOSPI and KOSDAQ opened lower, with their levels shown on a screen at Hana Bank’s headquarters dealing room in Seoul.
Maeil Business published interviews with three analysts on the causes of the decline and possible rebound conditions.
Yoo forecast that weakness could continue until early November before a possible relief rally toward year-end.
- Analysts interviewed
- Park Yeon-ju, Yoo Jong-woo and Vincent (Kim Doo-eon)
- KOSPI forecast range
- 5,150–7,200
- Weakness forecast
- Through early November, according to Yoo Jong-woo
- Potential rebound period
- Toward year-end, if policy uncertainty is resolved
- Key rebound conditions
- AI profitability, semiconductor earnings and renewed foreign buying
What people are saying
The most important signal is confirming again the sustainability of AI investment and the earnings-generating ability of semiconductor companies
Foreign selling is mainly profit-taking and risk management amid increased share-price volatility
I expect weakness through early November, but after that, if policy uncertainty is resolved, a relief rally could appear through year-end
The shape of the share-price movement after the sharp decline will be a gradual recovery in a √ shape