News · eGov
South Korean equities posted sharp losses on 5 November 2026 after the Democratic Party's landslide U.S. midterm victory raised concerns about tighter regulation of artificial intelligence data centres.
✦ AI SUMMARY 30-second read
- The KOSPI closed 300 points, or 5.28 percent, lower at 5,383.80 on 5 November 2026.
- Foreigners sold a net 3.39 trillion won worth of South Korean shares during the session.
- Samsung Electronics fell 7.57 percent and SK hynix dropped 9.46 percent on AI regulation worries.
Why it matters: A Democratic-led U.S. Congress could tighten AI data-centre regulation, cooling investment in the global semiconductor sector.
This summary was generated by AI. Editors may review and update it.
South Korean stocks fell sharply on 5 November 2026 as the Democratic Party's decisive victory in the U.S. midterm elections fed fears that an incoming Democratic-controlled Congress could impose stricter rules on artificial intelligence data centres.
The benchmark Korea Composite Stock Price Index closed at 5,383.80, a drop of 300 points or 5.28 percent. The index had opened 1.82 percent lower and continued to slide through the morning session.
The won weakened against the U.S. dollar, quoted at 1,342.1 won per dollar as of 3:30 p.m., down 0.6 won from the previous session's close.
What happened on the bourse
Trade volume was light, with 256.8 million shares changing hands for a combined value of 22.6 trillion won, equivalent to US$16.8 billion. Declining stocks outnumbered advancing ones 534 to 344.
Foreigners were the dominant sellers, offloading a net 3.39 trillion won worth of shares. Institutions and individual investors bought a net 841.8 billion won and 2.28 trillion won, respectively.
The bourse operator activated a sell-side sidecar at 10:16 a.m. to suspend programme trading in KOSPI-listed shares for five minutes, a measure used to curb runaway automated selling.
Sector movements
Semiconductor and chip-related counters bore the brunt of the sell-off. Samsung Electronics tumbled 7.57 percent to 201,500 won, while SK hynix plummeted 9.46 percent to 1.26 million won. Chip equipment maker Hanmi Semiconductor slumped 9.13 percent to 169,100 won, and Samsung Electro-Mechanics dived 15.34 percent to 944,000 won.
Kim Seok-hwan, an analyst at Mirae Asset Securities, said the 'blue wave' dragged down shares within semiconductor value chains and stoked foreign selling, adding that Democratic control of both chambers of Congress had raised concerns over tighter AI data-centre regulation and slower AI investment.
Refinery and defence stocks also declined. SK Innovation sank 7.68 percent to 114,200 won, and Hanwha Aerospace fell 7.48 percent to 680,000 won, with rising hopes for diplomatic resolutions to conflicts in the Middle East and Eastern Europe cited as an additional factor.
Automakers bucked the trend: Hyundai Motor rose 3.53 percent to 293,500 won and Kia gained 5.22 percent to 100,800 won. Internet portal operator Naver jumped 8.26 percent to 184,900 won, while mobile carrier SK Telecom edged up 0.13 percent to 77,500 won.
What happens next
The Democratic-controlled Congress is set to take over in January, and market participants will be watching closely for legislative signals on AI data-centre policy that could influence investment decisions in the technology sector.
Elets will update this story as developments unfold.