In brief
On Nov. 3, 2026, the Korean market opened with the KOSPI sinking between 2.46% and 3.36%, as investors nervously awaited possible policy shifts in the U.S. over the midterm elections and worried about the economic impact of expansive AI spending. Tech giants such as Samsung Electronics and SK hynix fell sharply, oil prices dipped on hopes of a U.S.–Iran peace deal, and the won weakened. Sources report differing KOSPI figures, reflecting the market's volatility, while broader regional analysts warn that U.S. election outcomes may only modestly alter policy.
On Nov. 3, 2026, South Korean stocks opened sharply lower as investors weighed concerns about massive artificial‑intelligence spending ahead of the U.S. midterm elections, sending the benchmark Korea Composite Stock Price Index (KOSPI) down between 2.46% and 3.36%.
One Yonhap bulletin listed the KOSPI at 5,662.37, a fall of 196.71 points or 3.36 percent, while another reported the index at 5,715.19 after a 143.89‑point drop of 2.46 percent.
Tech giants were the most affected. Samsung Electronics tumbled 4.59 percent, and chipmaker SK hynix slumped 5.1 percent. In a separate early‑session report, shares of Naver and Kakao fell 1.3 percent and 1.1 percent, respectively, as the companies announced new AI‑related layoffs and regulatory scrutiny.
Other heavyweights also slid: Hyundai Motor fell 1.57 percent; Doosan Enerbility sank 3.77 percent; HD Hyundai Heavy Industries declined 2.26 percent; and defense giant Hanwha Aerospace dropped 0.81 percent.
Oil prices traded lower on optimism about a potential U.S.–Iran peace agreement, echoing a dip seen in global markets that were also nervous about the U.S. midterm elections.
At 9:15 a.m. local time, the Korean won was trading at 1,342.05 won to the U.S. dollar, up 3.95 won from the close of the previous session.
The market’s decline was framed by analysts who note that the rapid deployment of artificial intelligence could destabilize the South Korean economy, especially if U.S. lawmakers introduce stricter AI regulations after the midterms.
Regional Lens on the U.S. Midterms
Across the Asia‑Pacific, governments and businesses have been closely monitoring the U.S. midterm elections in hopes of policy change.“Of course, everybody is watching,” said Steven Okun, a trade specialist and chief executive of APAC Advisors in Singapore. “It’s great political theatre.”
“We might even see an impeachment of the secretary of defence, but it doesn’t change the overall impact of the war.” – Steven Okun, Al Jazeera interview.
Okun and other analysts caution that a Democratic‑controlled Congress may have limited power to alter President Trump’s foreign‑policy agenda, even if it shifts from the current administration. They highlight that the U.S. Congress’s formal war‑declaration power is secondary to the executive’s military actions, and a Trump veto could defeat most new legislation.
Final uncertainties remain as to the precise impact of AI spending on South Korea’s economic stability, the degree of regulatory tightening the U.S. might enforce post‑midterms, and the likelihood that the U.S. could shift its Middle Eastern policies in favor of a swift peace with Iran.
