KOSPI falls 3.5 percent as chip stocks reverse rally

The KOSPI lost 202 points or 3.5 percent to close at 5,534 points on October 22. Chip profit-taking intensified after the previous session's rally, while the Bank of Korea kept its policy rate at 3.0 percent and retained a tightening bias, Yonhap and Reuters reported.

SK hynix fell 5.5 percent, while Samsung Electronics dropped 4.0 percent. Both stocks gave back most of their gains from October 21 as investors reassessed artificial intelligence investment returns, Yonhap reported.

Why did the KOSPI fall 3.5 percent?

The Bank of Korea held its seven-day repurchase rate at 3.0 percent, matching the forecast of all 34 analysts surveyed by Reuters. The central bank upgraded its growth outlook and said it would assess the timing and pace of future increases.

Profit-taking in semiconductor shares added pressure after the index gained 3.3 percent on October 21. Analysts also pointed to weaker confidence in the profitability of the artificial intelligence investment chain, Reuters reported.

KOSPI sectors widen the decline

Medical and precision instruments fell 4.7 percent, while chemicals dropped 4.7 percent. Electrical and electronics stocks declined 4.5 percent, and manufacturing shares lost 4.2 percent, Asia Economy reported.

Only general services rose, gaining 1.9 percent. Decliners outnumbered advancers by 709 to 174, showing that selling extended beyond the largest chipmakers.

KOSPI course shows a sharp reversal

The index opened at 5,670 points after the previous close of 5,736 points. It briefly reached 5,740 points before falling to a low of 5,486 points and recovering into the close, The Korea Times reported.

What comes next for the KOSPI

• October 23, 2026, 9:00 a.m. KST: The next regular KOSPI session begins in Seoul, Korea Exchange information shows.
• October 23, 2026, 10:45 p.m. KST: U.S. October flash manufacturing and services purchasing managers' indexes are due, Stockhub says.

KOSPI price data for October 22, 2026

The KOSPI closed at 5,534 points on October 22, down 202 points or 3.5 percent from the previous close of 5,736 points, Yonhap reported. It opened at 5,670 points, reached a high of 5,740 points and touched a low of 5,486 points.

More market reports and analysis on the KOSPI