Business · Markets · 3 hrs ago
South Korean stocks face a test from US tech earnings after sharp fall
The KOSPI fell 14.46% last week, led by sharp losses in semiconductor stocks, then rose 2.05% on Friday to close at 5,668.05.
South Korean investors are now looking for signs that the market can recover, but analysts warn that volatility may continue.
Earnings from major US technology companies, including Meta, IBM and Western Digital, are due this week and could show whether spending on artificial intelligence is holding up.
Investors are also watching South Korea’s export figures for October 1–20 to see whether semiconductor exports remain strong.
Foreign investors have been selling shares, and analysts say a slower pace of selling would help the market steady.
The Bank of Korea is scheduled to meet on October 22, with investors watching for clues about future interest-rate increases.
Analysts say a short-term rebound would not necessarily mean the broader market downturn has ended, and some recommend buying shares of large companies gradually rather than all at once.
South Korean stocks are expected to seek a rebound this week as investors assess earnings from major US technology companies.
The KOSPI fell 14.46% last week, despite rising 2.05% on its final trading day, Oct. 16, to close at 5,668.05.
Investors will look for signs that the earnings results ease concerns about the durability of artificial intelligence investment and the semiconductor outlook.
Analysts also said foreign selling, the Bank of Korea’s policy decision and South Korean export data could affect the market.
NH Investment & Securities forecast the KOSPI to trade between 5,100 and 6,100 this week.
- Who
- South Korean stock investors and companies listed on the Korean market.
- What
- The KOSPI is expected to seek a rebound after a sharp weekly fall, with investors watching US technology earnings.
- When
- The week of Oct. 19–23, 2026; the KOSPI’s last trading day cited was Oct. 16.
- Where
- South Korea’s stock market, with key earnings announcements from US companies.
- Why
- Investors are assessing concerns about sustained AI investment, semiconductor prospects and continued foreign selling.
This story does not have two clearly opposing sides.
The KOSPI fell 14.46%, led by semiconductor stocks.
The KOSPI rose 2.05% to close at 5,668.05, but did not recover its earlier weekly losses.
South Korean markets were expected to seek a rebound as investors assessed US company earnings.
Meta, Lam Research, IBM and Texas Instruments were scheduled to report earnings.
Western Digital was scheduled to report earnings, and the Bank of Korea’s Monetary Policy Board was due to meet.
- KOSPI weekly fall
- 14.46%
- KOSPI close on Oct. 16
- 5,668.05
- NH Investment & Securities KOSPI forecast
- 5,100–6,100
- US earnings date
- Oct. 21: Meta, Lam Research, IBM and Texas Instruments
- Bank of Korea meeting
- Oct. 22
What people are saying
The key is whether earnings announcements from major companies can ease doubts about the sustainability of AI investment and the semiconductor industry outlook.
What became an issue this time was CoreWeave’s unsecured debt, while the bonds of big tech companies with strong cash-generation and investment-grade bonds are relatively stable.
Even if foreign investors do not turn to net buying, a slowdown in selling and easing forced-sale pressure after the index’s sharp fall are prerequisites for calming the decline.
In October, the focus will be on assessing the effects of the rate increases, but it will be important to watch the timing and pace of any further increase and signals about a November increase.