South Korea's KOSPI Records Seventh-Largest Monthly Drop in History

Key Facts

The South Korean KOSPI index fell 16.19% last month, marking the seventh-largest monthly decline in its history. Chosun Ilbo reported that the index dropped from 6,838.04 to 5,730.74 points as investor sentiment weakened significantly.

The decline was fueled by concerns over deteriorating cash flows at major U.S. tech firms and a potential slowdown in artificial intelligence investments. This market performance followed local economic data showing GDP growth of 1% on a quarterly basis on October 26, 2026, while annual exports grew by 93.7% as of November 1, 2026.

Market participants are looking ahead to the release of the Manufacturing PMI on November 2, 2026, with forecasts at 54.2. Additionally, the annual inflation rate data is scheduled for release on the same day, with expectations holding at 2.9%.