Key facts
- The KOSPI closed 6.02% lower at 5,059.69 on November 6, 2026, after an intraday fall of more than 8%.
- Samsung Electronics fell 6.35% and SK hynix fell 10.44%, the two stocks making up nearly half the KOSPI.
- The KOSPI 200 volatility index rose to a three-month high of 64.74, the Korea Exchange said.
- Finance Minister Lee Hyoung-il said the government would preemptively set up measures against excessive market responses.
- The government said it would temporarily ease leveraged investment requirements from November 9, 2026 for three months.
- The won was quoted at 1,356.6 per dollar at 3:30 p.m., down 14.5 won from the prior session's close.
South Korea's benchmark KOSPI closed 6.02% lower at 5,059.69 on November 6, 2026, after falling more than 8% in intraday trading and briefly dropping below 5,000 points, Yonhap reported. The index pared part of the loss before the close.
Samsung Electronics fell 6.35% and SK hynix fell 10.44%. The two stocks account for nearly half of the KOSPI's market, according to the report. The KOSPI 200 volatility index, a gauge of expected swings in the market, rose to a three-month high of 64.74, the Korea Exchange said.
Yonhap attributed the selling to concern that a Democratic Party victory in the US midterm elections could slow construction of AI data centers. Democrats won majorities in both the US Senate and House of Representatives, and the party won the Texas governorship, the report said. The tech-heavy Nasdaq fell more than 5% in the prior US session, it said.
Han Ji-young, an analyst at Kiwoom Securities, said volatility in the local market is likely to continue after the decline. Yoon Chang-yong, a senior analyst at Shinhan Financial Investment, said concern about global AI investment spending was spreading across markets. "The current correction in the stock market shows that burdens for raising funds for AI investment are spreading into doubts over recovering funds from investments made already," Yoon said.
Daishin Securities said in a research note that the market's reaction to the AI-driven sell-off was excessive. Analyst Lee Kyung-min said the Democratic win may have prompted delays in AI data center construction, but the likelihood of a full-scale suspension of that build-out was low.
Finance Minister Lee Hyoung-il told a meeting with relevant ministers that the government "will preemptively set up measures and take them to prevent our stock markets from excessively responding" to the US tech sell-off. He said the country's economic fundamentals remain solid and cited forecasts by some experts that global AI investment may continue. The government said it would temporarily ease requirements on leveraged investments from November 9, 2026 for three months.
The won weakened against the dollar, quoted at 1,356.6 per dollar at 3:30 p.m., down 14.5 won from the close of the previous stock trading session. Foreign investors remained net sellers of local stocks, according to the report.