KOSPI Surges 2.5% to Reclaim 5,800 as Samsung and SK Hynix Stage Comeback After Friday's Brutal Selloff

SEOUL, South Korea — South Korean stocks rebounded sharply on Monday, with the benchmark KOSPI jumping about 2.5% as heavyweight chipmakers Samsung Electronics and SK Hynix recovered from early losses following last week's steep sell-off.

The KOSPI was up 142.06 points, or 2.48%, at 5,872.80 in late trading, reclaiming the 5,800 level after a volatile session that began in negative territory.

From red to green

The index opened lower as investors digested a sharp drop in U.S. technology shares on Friday, which was driven by renewed concerns about heavy spending on artificial intelligence. The KOSPI dipped nearly 2% in early trading before buyers stepped in.

By late morning, the index had turned positive. Samsung Electronics, which fell as much as 3.56% early in the session, narrowed its losses and moved higher, while SK Hynix recovered from an early drop of about 2%.

The rally gathered momentum in the afternoon. At one point, SK Hynix was up about 3.8%, and Samsung Electronics had gained 1.3%, helping the index widen its advance to 2% and beyond.

Other large-cap stocks, including SK Square and Hyundai Motor, also traded higher during the session.

Bouncing back from Friday's rout

Monday's gain followed a brutal end to last week. On Friday, the KOSPI fell nearly 5%, part of a broad Asian sell-off after a historic share price slump at Google parent Alphabet reignited worries about AI-related spending and returns.

Chipmakers have been at the center of the turmoil. Samsung and SK Hynix are major suppliers of memory chips used in AI data centers, making them highly sensitive to shifts in sentiment toward the AI trade.

A year of wild swings

South Korea's stock market has been among the world's most volatile this year, closely tied to the fortunes of its two chip giants.

The KOSPI hit record highs earlier in the year, with the index climbing above 8,800 in June as investors piled into memory chip stocks amid soaring demand for AI hardware.

But the market has since endured several dramatic swings. In late July, the index plunged 10.84% in a single session amid an Asia-wide sell-off in semiconductor shares, only to stage a record 17.91% one-day rebound days later after strong U.S. tech earnings.

The index entered a technical bull market again in August as the AI trade revived, but it has come under renewed pressure in recent weeks. Despite Monday's gain, the KOSPI has fallen more than 15% over the past month, though it remains nearly 39% higher than a year ago.

Record profits, nervous investors

The volatility comes even as Korean chipmakers report blockbuster results. SK Hynix posted record third-quarter revenue and operating profit last week, while Samsung became the first technology company to report more than 100 trillion won in operating profit in a single quarter.

But investors have focused on worries that memory prices could peak and that AI spending by big U.S. technology companies may not generate enough returns to justify the massive investment.

Last week, the KOSPI triggered a sell-side circuit breaker after a sharp drop in chip stocks following the earnings reports.

AI optimism returns in waves

Sentiment has shifted quickly in recent weeks. Late last month, the KOSPI jumped 3.4%, its biggest daily gain since February, after AI company Anthropic filed for a public listing, reviving enthusiasm for AI-related hardware stocks.

Analysts say the Korean market's heavy concentration in Samsung and SK Hynix means it often moves dramatically on news from the global AI industry.

What to watch

Investors are monitoring several key events this week, including the U.S. midterm elections on Tuesday, interest rate decisions by central banks including the Reserve Bank of Australia, and further earnings from global technology companies.

Any signs that AI spending remains strong could support further gains in Korean chip stocks, while renewed concerns about returns on AI investment could trigger more volatility.

For now, Monday's rebound offered some relief to investors after one of the most turbulent stretches in South Korea's stock market history.