KOSPI Opens 3.5% Lower as 2026 Rally Shrinks to 31%

The Korea Composite Stock Price Index (KOSPI) fell 3.5% at Tuesday's open, driven by a chip-led AI sell-off that cut its 2026 gain from roughly 116% to 31%. The index is now about 39% below its June record close. The decline accelerated in July and October, with Samsung Electronics and SK Hynix - accounting for 44% of the index in May - dropping 19.74% and 28.38% between Oct. 1 and Oct. 16. Foreign investors turned net sellers, and the index fell seven straight sessions through Oct. 15 before a stronger-than-expected US inflation reading on Oct. 15 pushed it down 7.57% to 5,554.22. Margin loans peaked at 38.63 trillion won in June, and forced liquidations topped 50 billion won for four straight sessions through Oct. 16.