KOSPI drops 0.61% as Nvidia CEO Jensen Huang scandal rattles Seoul markets
Synopsis
South Korea's KOSPI snapped a two-day, nearly 7-percent rally on Thursday after US reports emerged that Nvidia's board was preparing to remove CEO Jensen Huang over personal conduct allegations. With Nvidia deeply embedded in South Korea's semiconductor supply chain — and as the third-largest shareholder in Naver — the scandal has direct financial consequences for Seoul's biggest tech names.
Key Takeaways
KOSPI closed down 32.63 points (0.61%) at 5,342.73 on 12 November 2026 , ending a two-day rally.
US media reports suggested Nvidia's board was preparing to oust CEO Jensen Huang over alleged extramarital affairs.
Naver , where Nvidia is the third-largest shareholder, plunged 6.43% to 181,800 won .
SK hynix dropped 1.8% ; Samsung Electro-Mechanics tumbled 4.01% ; Samsung Electronics bucked the trend, rising 0.97% .
Total trade volume stood at 233.7 million shares worth 20.6 trillion won (~US$15.5 billion); losers outnumbered winners 595 to 268 .
The won firmed slightly, with the dollar at 1,330.7 won as of 3:30 pm local time.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) closed down 32.63 points, or 0.61 percent, at 5,342.73 on Thursday, 12 November 2026, snapping a two-day rally as uncertainty surrounding Nvidia CEO Jensen Huang's future weighed on semiconductor-linked stocks. The index had surged 4.39 percent on Tuesday and a further 2.6 percent on Wednesday before Thursday's reversal.
What Triggered the Sell-Off
US media reports indicating that Nvidia's board was reportedly preparing to remove Jensen Huang as chief executive — following allegations of multiple extramarital affairs — sent shockwaves through Seoul's tech-heavy market. Because Nvidia maintains deep business ties with South Korean chipmakers and technology firms, investor sentiment deteriorated sharply on concerns about the company's strategic direction under potential new leadership.
The index opened 0.2 percent higher and briefly touched an intraday high of 5,458.84 before sentiment soured, pushing it into the red for the session.
Semiconductor Stocks Bear the Brunt
Most semiconductor-related shares closed in negative territory. Chip memory giant SK hynix dropped 1.8 percent to 1.25 million won, while its parent company SK Square declined 0.63 percent to 791,000 won. Chip equipment manufacturer Hanmi Semiconductor retreated 1.14 percent to 181,900 won, and Samsung Electro-Mechanics tumbled 4.01 percent to 886,000 won.
Samsung Electronics, however, bucked the trend, rising 0.97 percent to 208,000 won. Internet conglomerate Naver — where Nvidia is the third-largest shareholder — was among the hardest hit, plunging 6.43 percent to 181,800 won, reflecting the direct ownership link between the two companies.
Defence Sector Also Retreats
Defence stocks added to the broader market weakness. Industry leader Hanwha Aerospace fell 0.76 percent to 654,000 won, while LIG D&A declined 2.02 percent to 364,500 won.
Trading Flow and Currency
Total trade volume was relatively light at 233.7 million shares worth 20.6 trillion won (approximately US$15.5 billion), with losing stocks outnumbering gainers 595 to 268. Foreign investors were net buyers of 370.4 billion won worth of equities, while institutions offloaded a net 690.3 billion won and retail investors sold a net 204.3 billion won.
The South Korean won strengthened slightly, with the dollar quoted at 1,330.7 won as of 3:30 pm local time — up 2.9 won from the previous session's close.
'The KOSPI was hit by uncertainties stemming from the scandal involving Nvidia CEO Jensen Huang,' said Lee Kyoung-min, an analyst at Daishin Securities. 'At the same time, some investors sought profits following the recent rally.'
What to Watch Next
All eyes will remain on any official communication from Nvidia's board regarding Huang's status. Given Seoul's semiconductor ecosystem's deep integration with the US chip giant, any confirmed leadership change could trigger further volatility across Korean tech stocks — particularly those with direct supply-chain exposure to Nvidia's AI and data centre product lines.
Point of View
A strategic partner, and an index-mover, which means any boardroom uncertainty in Santa Clara reverberates almost immediately in Seoul. The Naver plunge is the clearest illustration: a 6.43-percent fall in one of South Korea's most valuable internet firms because its third-largest shareholder faces a leadership question. If the Huang situation remains unresolved, it could dampen the momentum that Korean semiconductor stocks had built on AI-driven demand optimism — momentum that had already carried the index up nearly 7 percent in just two sessions.
NationPress
12 Nov 2026
Frequently Asked Questions
Why did the KOSPI fall on 12 November 2026?
The KOSPI dropped 0.61 percent to 5,342.73 on 12 November after US media reported that Nvidia's board was preparing to remove CEO Jensen Huang over allegations of multiple extramarital affairs. Because Nvidia has deep business ties with South Korean tech companies, uncertainty around Huang's future rattled investor sentiment across the semiconductor sector.
How is Nvidia connected to South Korean stocks?
Nvidia has extensive supply-chain relationships with Korean chipmakers such as SK hynix and Samsung Electronics. It is also the third-largest shareholder in Naver, South Korea's leading internet firm, which plunged 6.43 percent on the day. Any leadership change at Nvidia could affect procurement decisions and strategic partnerships with these companies.
Which South Korean stocks were worst affected?
Naver led losses with a 6.43 percent decline to 181,800 won. Samsung Electro-Mechanics tumbled 4.01 percent to 886,000 won, SK hynix dropped 1.8 percent to 1.25 million won, and LIG D&A fell 2.02 percent to 364,500 won. Samsung Electronics was an exception, gaining 0.97 percent.
What did the analyst say about Thursday's KOSPI move?
Lee Kyoung-min, an analyst at Daishin Securities, attributed the fall to 'uncertainties stemming from the scandal involving Nvidia CEO Jensen Huang' and noted that some investors also took profits after the KOSPI's sharp two-day rally of nearly 7 percent.
What should investors watch following this development?
Any official statement from Nvidia's board on Jensen Huang's status is the key near-term trigger. A confirmed leadership change could prolong selling in Korean semiconductor and tech stocks. Investors are also monitoring whether foreign buying — which remained positive at a net 370.4 billion won on Thursday — holds up if the uncertainty extends.
