Seoul KOSPI falls 40 points amid Nvidia CEO spy scandal, AI sector jitters
Synopsis
South Korea's KOSPI slipped on Monday as Nvidia's internal probe into CEO Jensen Huang — sparked by allegations he was targeted by a Chinese spy — injected fresh doubt into AI sector valuations. Semiconductors held up relatively well, but battery, auto and defence stocks bore the brunt, with LG Energy Solution alone shedding nearly 6%.
Key Takeaways
KOSPI closed down 40.84 points at 5,018.85 on 9 November 2026 .
Nvidia Corp. opened an internal probe into CEO Jensen Huang over alleged contact with a suspected Chinese spy , unsettling AI-linked markets.
LG Energy Solution fell 5.78% , Hanwha Aerospace dropped 3.18% , and Hyundai Motor lost 2.86% .
Samsung Electronics and SK hynix bucked the trend, rising 0.64% and 0.35% respectively.
Net foreign and retail selling totalled 1.18 trillion won ; institutional investors were net buyers at 717.1 billion won .
The Korean won strengthened by 9.5 won to 1,347.1 per US dollar by mid-afternoon.
The Korea Composite Stock Price Index (KOSPI) closed 40.84 points lower at 5,018.85 on Monday, 9 November 2026, as investors grappled with fresh uncertainty in the artificial intelligence (AI) sector — most notably an internal probe opened by Nvidia Corp. following allegations that its chief executive was targeted by a suspected Chinese spy. The Korean won strengthened against the US dollar, bucking the equity decline.
What Drove the Selloff
'Investors were searching for direction while bargain hunting continued in semiconductors,' said Lee Kyoung-min, an analyst at Daishin Securities. The session was characterised by cautious positioning: trade volume was light at 231.8 million shares worth 17.26 trillion won (approximately US$12.8 billion), with losers outpacing winners 527 to 340.
Foreigners and retail investors were net sellers, offloading a combined 1.18 trillion won, while institutional investors absorbed a net 717.1 billion won.
The Nvidia Scandal and AI Sector Jitters
Nvidia Corp. disclosed it would open an internal investigation into its Chief Executive Officer Jensen Huang over alleged contact with a suspected Chinese intelligence operative. In a message to Nvidia employees, Huang reportedly admitted to being 'unfaithful' to his wife and took 'full responsibility' for his actions. The disclosure rattled sentiment around AI-linked equities globally, with South Korean chipmakers briefly caught in the crossfire.
Separately, analysts noted that concerns over the future of AI data centres following the Democrats' sweeping victory in the United States midterm elections had already begun to ease heading into the session, providing some cushion for semiconductor stocks.
Winners and Losers on the KOSPI
Semiconductors managed a partial recovery despite the broader weakness. Samsung Electronics rose 0.64% to close at 189,900 won, and SK hynix edged up 0.35% to 1,136,000 won.
Heavy losses were concentrated elsewhere. Battery manufacturer LG Energy Solution surrendered 5.78% to close at 318,000 won, while automaker Hyundai Motor shed 2.86% to 271,500 won. Defence conglomerate Hanwha Aerospace fell 3.18% to 639,000 won.
Currency and Bond Markets
The Korean won was quoted at 1,347.1 won per US dollar as of 3:30 pm local time, up 9.5 won from the previous session's close — a sign that currency traders viewed the selloff as equity-specific rather than a broader macro deterioration.
Bond prices fell as yields climbed. The yield on three-year South Korean Treasury bonds added 2.6 basis points to 3.639%, while the benchmark five-year government bond yield rose 1.4 basis points to 3.731%.
What to Watch Next
All eyes remain on the outcome of Nvidia's internal probe and any regulatory or geopolitical fallout from the espionage allegations. Any deepening of the scandal could weigh further on AI and semiconductor valuations across Asian markets. South Korea's export-heavy KOSPI remains acutely sensitive to both US tech sentiment and the trajectory of global AI spending.
Point of View
Meaning any sustained AI-spending freeze would hit Seoul harder than most. What is striking today is that semiconductors actually held ground while EV batteries, autos and defence sold off — suggesting investors are parsing sector-level exposure rather than dumping indiscriminately. The real question is whether the Nvidia probe widens into a broader US-China tech-espionage narrative; if it does, the geopolitical premium on Korean tech stocks could reprice sharply.
NationPress
9 Nov 2026
Frequently Asked Questions
Why did Seoul's KOSPI fall on 9 November 2026?
The KOSPI fell 40.84 points to 5,018.85 primarily because of an internal probe opened by Nvidia Corp. into its CEO Jensen Huang, following allegations he was targeted by a suspected Chinese spy. The uncertainty rattled AI-linked equities and contributed to cautious investor sentiment across the board.
What is the Nvidia CEO spy scandal about?
Nvidia Corp. announced it would investigate CEO Jensen Huang after allegations emerged that he had been targeted by a suspected Chinese intelligence operative. Huang reportedly acknowledged in a message to employees that he had been unfaithful to his wife and took full responsibility for his actions.
Which South Korean stocks fell the most?
LG Energy Solution was the hardest hit, falling 5.78% to 318,000 won. Hanwha Aerospace dropped 3.18% to 639,000 won, and Hyundai Motor fell 2.86% to 271,500 won.
Did any stocks rise despite the KOSPI decline?
Yes. Samsung Electronics rose 0.64% to 189,900 won and SK hynix edged up 0.35% to 1,136,000 won, as semiconductor stocks recovered some ground on bargain hunting.
How did the Korean won perform on the day?
The Korean won strengthened against the US dollar, trading at 1,347.1 won per dollar as of 3:30 pm — up 9.5 won from the previous session's close, suggesting the broader macro picture was not seen as alarming.
