# KOSPI Plunges 34% as Foreign Investors Pull Out

> South Korea's stock market crashes 34% after foreign investors sell ₩208 trillion.
- Title: KOSPI Plunges 34% as Foreign Investors Pull Out | Shortify
- Summary: South Korea's stock market crashes 34% after foreign investors sell ₩208 trillion. South Korea's KOSPI dropped 34.5% in the second half of the month as…
- Keywords: kospi, foreign investors, korea discount, ai credit risk, dot-com bubble, price-to-earnings ratio, coreweave, oracle, softbank, spacex, openai, credit default swap
- Source: BigGo Finance — https://finance.biggo.com/news/b6d12a05-300a-4d62-b577-07006761a985
- Author: BigGo Finance
- Published: 2026-10-19T10:35:22+00:00
- Read time: 1 min
- Topics: kospi, foreign investors, korea discount, ai credit risk, dot-com bubble, price-to-earnings ratio, coreweave, oracle, softbank, spacex, openai, credit default swap
## KOSPI Plunges 34.5%
South Korea's KOSPI has plunged 34.5% in the second half, sharply diverging from major markets such as the Nasdaq and Taiwan.
## Foreign Investors Sell ₩208 Trillion
Foreign investors net sold about 208 trillion won (approximately $156.2 billion) of KOSPI shares this year.
## Korea Discount Persists
The Korea Discount, the undervaluation of the South Korean market, has yet to be resolved despite revisions to the Commercial Act and stronger shareholder-return policies.
## AI Credit Risk Surges
CoreWeave's five-year CDS spread topped 1,140 basis points intraday, signaling a 64% probability of default within five years.
## Price-to-Earnings Ratio Drops
The KOSPI's price-to-earnings ratio fell more than 30% in two months before the selloff, resembling the 2000 dot-com collapse.
## 2000 Dot-Com Bubble Comparison
In 2000, the KOSPI PER plunged 39.0% in two months, from 29.65x to 18.10x, before the dot-com bubble burst.
## Market Divergence
The KOSPI fell for seven straight sessions from the 6th to the 15th of this month, a cumulative decline of 20.7%.
## Semiconductor Cycle Weakens
Claims that the AI cycle has peaked are raising concerns about weakening momentum across global semiconductor stocks.
## Korea Discount Resolves
Analysts predict the market will regain normal footing as efforts to narrow the Korea Discount continue.
## Key takeaway

South Korea's KOSPI dropped 34.5% in the second half of the month as foreign investors sold ₩208 trillion (≈$156.2 billion) of shares, sparking warnings of a dot-com bubble repeat.