KOSPI falls 3.73% to 5,552.74, lowest close since April, on bond yields and AI worries
In short
South Korea's KOSPI index fell 215.27 points, or 3.73%, to close at 5,552.74 on 20 October, Yonhap and other outlets reported. Dong-A Ilbo said it was the lowest close in about six months and linked the fall to rising government bond yields and concern about AI profitability. No sector rose, and Samsung Electronics and SK hynix both fell.
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South Korea's KOSPI fell 215.27 points, or 3.73%, to close at 5,552.74 on 20 October, according to Yonhap and Asia Economy. In a later fuller report, Yonhap described the fall as a sharp drop that gave back all of the gains of the past two days. [ 1 , 2 , 4 ]
Dong-A Ilbo said the close was the lowest since 7 April, when the index closed at 5,494.78, a gap of a little over six months. It said the index fell more than 4% during the session and dipped below 5,500. Institutional investors sold 1 trillion won and foreign investors 540 billion won, the paper said. [ 5 ]
Maeil Business, in an article it said was written by an automated algorithm, reported that no sector rose. Transport equipment and parts fell 6.61%, chemicals 6.14%, metals 5.96% and machinery and equipment 5.09%. Across the KOSPI market 407 stocks rose and 1,946 fell. [ 3 ]
None of the stocks with the largest market value rose, Maeil Business said. SK Square fell 5.0%, Hyundai Motor 4.91%, SK hynix 4.23%, LG Energy Solution 4.17% and Samsung Life 3.07%. Dong-A Ilbo said Samsung Electronics and SK hynix, the two largest by market value, fell 2.98% and 4.23%. Among smaller moves, Hyungji Elite (30.0%) and KR Motors (29.94%) hit the upper limit, while Hanwha Systems fell 13.9% and Hyundai Rotem 13.7%. [ 3 , 5 ]
Dong-A Ilbo linked the decline to concern over France's fiscal situation, which it said pushed up government bond yields in major countries including the United States. Citing the Financial Times, it said France's 10-year yield closed at 4.93% on 19 October, up 0.14 percentage points and the highest since 2002. It gave US and German 10-year yields as 5.14% and 3.46%, both higher. It also cited continuing worries over the profitability of AI businesses, which it said weighed on chip stocks. [ 5 ]
Lee Gyeong-min (이경민), a researcher at Daishin Securities, was quoted as saying that higher yields in major countries put downward pressure on the domestic market and that unresolved concern over AI profitability had weakened investor sentiment. The KOSDAQ fell 3.33% to 781.97. The won closed at 1,328.1 per dollar, down 2.2 won from the previous daytime close and the lowest daytime close since 2 October 2024, Dong-A Ilbo said. [ 5 ]
Why it matters
The drop wiped out the index's gains of the previous two days, according to Yonhap, and broad losses across sectors and large companies are reported. Dong-A Ilbo ties the move to rising bond yields in the United States, Germany and France and to worries about AI profitability.
Key facts
- The KOSPI closed at 5,552.74 on 20 October, down 215.27 points or 3.73%. [ 1 , 2 , 3 , 4 , 5 ]
- Dong-A Ilbo said it was the lowest close since 7 April, when the index closed at 5,494.78. [ 5 ]
- No sector rose; transport equipment and parts fell 6.61%, chemicals 6.14%, metals 5.96% and machinery and equipment 5.09%. [ 3 ]
- On the KOSPI market 407 stocks rose and 1,946 fell. [ 3 ]
- SK hynix fell 4.23% and Samsung Electronics 2.98%. [ 3 , 5 ]
- Institutional investors sold 1 trillion won and foreign investors 540 billion won, Dong-A Ilbo said. [ 5 ]
- The KOSDAQ index fell 3.33% to 781.97. [ 5 ]
Confirmed by several sources
Still unclear
- What caused the fall. Only Dong-A Ilbo gives causes, citing rising bond yields and AI profitability worries, and it presents the bond-yield link as an interpretation ("풀이된다") and quotes one analyst.
- Whether the index dropped below 5,500 during the session. Only Dong-A Ilbo says it fell more than 4% intraday and below 5,500.
What local media are saying
Timeline, local time
- Yonhap published the KOSPI closing figures: down 215.27 points (3.73%) at 5,552.74. [ 1 ]
- Asia Economy published the same closing figures. [ 2 ]
- Maeil Business published its closing report with sector and stock moves. [ 3 ]
- Yonhap published a fuller report saying the index gave up the gains of the past two days. [ 4 ]
- Dong-A Ilbo published its report on the six-month low and the bond-yield and AI concerns. [ 5 ]