Seoul KOSPI drops 2.44% as chip stocks tumble on US AI selloff
Synopsis
South Korea's KOSPI shed over 2.44% on Friday as investors dumped chip stocks following a US tech rout that saw Nvidia fall 4.4%, Intel drop 8% and Micron plunge over 6%. The pain was cushioned slightly for SK hynix after it scrapped plans to list its US subsidiary Solidigm — a move that had threatened to deepen the holding company discount on its parent SK Square.
Key Takeaways
KOSPI fell 135.29 points (2.44%) to 5,398.48 as of 11:20 am on 23 October 2026 .
Samsung Electronics shed 3.03% ; SK hynix fell 0.25% after paring early losses.
US triggers: Nasdaq down 2.6% ; Micron −6.26%, Intel −8.04%, Nvidia −4.4%.
SK hynix suspended plans for a US IPO of subsidiary Solidigm , which had been valued at up to US$150 billion .
The Korean won traded at 1,324 won per dollar , up 2.5 won from the prior session.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) plunged 135.29 points, or 2.44 percent, to 5,398.48 as of 11:20 am local time on Friday, 23 October 2026, dragged down by heavy selling in semiconductor and artificial intelligence (AI)-linked shares. The index opened 2.36 percent lower as investors moved to lock in gains following an overnight rout in US technology stocks.
What Triggered the Selloff
The immediate catalyst was a sharp decline in major US technology and semiconductor counters overnight. The Nasdaq Composite shed 2.6 percent, while the broader S&P 500 fell 1.21 percent. The Dow Jones Industrial Average was a rare bright spot, edging up just 0.02 percent, underscoring how concentrated the damage was in the tech segment.
Among the worst-hit US names, Micron Technology plunged 6.26 percent, while Nvidia and Intel tumbled 4.4 percent and 8.04 percent, respectively — sending a clear signal to Asian markets that the AI-driven rally in chip stocks was facing a reckoning.
Seoul Chip Heavyweights Bear the Brunt
In Seoul, large-cap semiconductor stocks mirrored the US declines. Samsung Electronics shed 3.03 percent, while SK hynix fell 0.25 percent, having pared steeper early losses after the company announced it was suspending plans to list its US subsidiary, Solidigm. AI investment firm SK Square edged down 0.4 percent following the same news.
The decision to halt the Solidigm listing process came amid concerns about the so-called holding company discount — a market phenomenon in which a parent company's shares trade below the aggregate value of its underlying assets. Solidigm sits within a multilayered structure: SK Square is the parent of SK hynix, which owns Solidigm. A separate US listing, critics argued, risked deepening that discount further.
Solidigm IPO Plans Shelved
Reports had circulated that Solidigm was considering an initial public offering (IPO) in the United States as early as next year, with a potential valuation of up to US$150 billion. SK hynix moved to quash that speculation on Friday.
'We have decided to halt its review of a pre-IPO fundraising round and a subsequent IPO after taking into account overall capital market conditions,' the South Korean chipmaker said in a statement.
The announcement offered some relief to SK hynix shareholders, helping the stock recover a portion of its intraday losses, though broader sentiment remained firmly negative.
Currency and Market Outlook
The Korean won was trading at 1,324 won per US dollar as of 11:20 am, up 2.5 won from the previous session — a modest strengthening that offered little comfort to equity markets. Analysts will be watching whether the US tech correction deepens ahead of key earnings releases, which could determine whether Friday's selloff marks a short-term correction or the start of a broader de-rating of AI and semiconductor valuations globally.
Point of View
Samsung and SK hynix catch a cold. More structurally interesting is the Solidigm IPO reversal: SK hynix stepping back from a US$150 billion listing to protect its holding company structure suggests Korean conglomerates are increasingly sensitive to the discount at which their parent stocks trade. That is a quiet but significant shift in how chaebol structures are being managed for shareholder value.
NationPress
23 Oct 2026
Frequently Asked Questions
Why did Seoul's KOSPI fall sharply on 23 October 2026?
The KOSPI fell 2.44% to 5,398.48 as investors sold South Korean chip stocks following steep overnight losses in US AI and semiconductor shares, including Nvidia (−4.4%), Intel (−8.04%), and Micron (−6.26%). The selloff reflected risk-off sentiment tied to concerns about the sustainability of the global AI-driven rally.
What happened to Samsung Electronics and SK hynix on Friday?
Samsung Electronics shed 3.03% while SK hynix fell 0.25%, the latter recovering from steeper early losses. SK hynix's partial rebound came after the company announced it was halting plans to list its US subsidiary Solidigm on American markets.
Why did SK hynix cancel the Solidigm IPO?
SK hynix cited 'overall capital market conditions' in its decision to halt both a pre-IPO fundraising round and a subsequent public listing for Solidigm. Analysts also noted concerns about the holding company discount — the risk that a separate Solidigm listing would cause SK hynix and parent SK Square to trade at an even greater discount to their underlying asset values.
What was Solidigm's expected valuation in a US IPO?
Reports had suggested Solidigm was targeting a US IPO as early as next year, with a potential valuation of up to US$150 billion. Those plans have now been put on hold indefinitely following SK hynix's announcement.
How did the US markets perform overnight before Seoul's selloff?
US markets closed mixed overnight. The Dow Jones Industrial Average barely moved, up 0.02%, but the S&P 500 fell 1.21% and the Nasdaq Composite dropped 2.6%, with heavy losses concentrated in technology and semiconductor stocks.
