South Korean shares fell on October 26, 2026, as concerns about artificial intelligence investments weighed on sentiment ahead of major US technology earnings. The KOSPI dropped 83.14 points, or 1.50%, to 5,467.16 at 03:30 GMT, while the won strengthened and government bond yields declined.
Key Takeaways
- The KOSPI remained about 30% higher for the year despite the intraday decline.
- US technology companies’ capital spending forecasts are in focus during a busy earnings week.
- Foreign investors sold a net 517.9 billion won of South Korean shares.
Table of Contents
- South Korean shares decline across the market
- Technology earnings put AI spending in focus
- Won strengthens as government bond yields fall
- Conclusion
South Korean shares decline across the market
Losses extended well beyond technology stocks. Among 914 issues traded, 792 declined and 98 advanced, showing that the weakness was broad rather than confined to a few large companies.
Samsung Electronics fell 1.39%, while SK Hynix declined 0.47%. Automakers, battery manufacturers, steelmakers and pharmaceutical stocks also traded lower.
Korea Exchange’s explanation of market-capitalization weighting identifies the KOSPI as an index whose constituent weights depend on company market value. Larger companies therefore carry more influence over the benchmark than smaller constituents, although the weak market breadth showed widespread selling in this session.
| Item | Details |
|---|---|
| LG Energy Solution | Shares fell 1.70%. |
| Hyundai Motor | Shares fell 2.71%. |
| Kia | Shares fell 1.78%. |
| POSCO Holdings | Shares fell 0.91%. |
| Samsung BioLogics | Shares fell 0.34%. |
Technology earnings put AI spending in focus
About a third of S&P 500 companies were scheduled to release quarterly results during the week, including Alphabet, Microsoft and Amazon. Investors were watching their capital expenditure forecasts to assess the outlook for AI-related investment and spending.
Those forecasts remained pending at the time of the market snapshot. The Korean selloff therefore came ahead of the earnings announcements, rather than in response to newly released results from those companies.
SK Hynix said it would announce shareholder return measures alongside its quarterly results on Wednesday, October 28. The scope of those measures had not yet been announced.
Won strengthens as government bond yields fall
The won strengthened 0.32% to 1,322.0 per dollar on the onshore settlement platform, compared with its previous close of 1,326.2. The currency had appreciated about 9% against the dollar since the start of the year.
Government bonds also gained. The most liquid three-year Korean treasury yield fell 2.4 basis points to 3.792%, while the benchmark 10-year yield declined 1.9 basis points to 4.080%. December futures on three-year treasury bonds rose 0.09 point to 103.24.
The moves left equities, the currency and government debt pointing in different directions: stock prices fell, while the won and bond prices rose.
Conclusion
The next scheduled developments are the week’s major US technology earnings and SK Hynix’s October 28 results and shareholder return announcement. These releases will provide concrete updates on spending plans and payouts after Monday’s cautious trading.
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Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
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