South Korean stocks KOSPI and KOSDAQ posted modest gains on the 9th day after surrendering most of their intraday advances, with KOSPI closing at 7291.91 (+0.62%, +45.12 points) and KOSDAQ at 794.00 (+1.15%, +9.00 points). The indices had surged over 3% at the opening bell but retreated as individual investors sold over 2 trillion won worth of shares, offsetting institutional purchases exceeding 1.86 trillion won and foreign buying of 280 billion won. Market volatility persists amid concerns over semiconductor sector peak-out and escalating US-Iran military tensions, according to Korea Exchange and NextTrade data.
Institutional Buying Fails to Sustain Early Rally
Institutional investors purchased over 1.86 trillion won in the securities market on the 9th day, with pension funds also maintaining buying positions, according to Korea Exchange and NextTrade combined data. Individual investors sold over 2 trillion won in profit-taking activity. Foreign investors bought 280 billion won but the combined institutional demand proved insufficient to maintain the early rebound momentum. KOSPI briefly recovered the 7500 level during the session before sliding to the early 7000s intraday, ultimately closing with partial recovery of losses.
SK Hynix Outperforms Ahead of NASDAQ ADR Listing
SK Hynix closed 5.30% higher on the 9th day ahead of its NASDAQ American Depositary Receipt (ADR) listing scheduled for the 10th day, showing relatively strong performance among large-cap stocks. SK Square also exhibited concurrent strength. Samsung Electronics closed nearly flat after surrendering strong opening gains. Major stocks including Hyundai Motor (-3.68%), Kia (-7.65%), Samsung Life Insurance (-5.78%), and Samsung C&T (-4.18%) declined. Jung Da-woon, researcher at LS Securities, stated that Samsung Electronics' earnings announcement became a "sell-on" issue as doubts about AI investment sustainability intensified, and the shaking of Samsung Electronics and SK Hynix caused the existing upward supply structure to work in the opposite direction, amplifying the decline.
US-Iran Tensions and Semiconductor Concerns Weigh on Sentiment
Geopolitical anxiety continued as news emerged that Iran's Revolutionary Guard Corps (IRGC) struck US military bases in Kuwait and Bahrain while the United States conducted consecutive airstrikes centered on southern Iran. Kim Sung-geun, researcher at Mirae Asset Securities, stated that tech-related volatility poses a greater threat to the market than the Iran conflict, noting that concerns over capital expenditure (CAPEX) contraction triggered by Meta's cloud business entry remain, and the volatile environment surrounding semiconductors may persist for the time being. KOSDAQ briefly recovered the 800 level during the session but surrendered most gains in the afternoon, falling back below 800 as institutional buying of 320 billion won was offset by individual selling of 360 billion won.
Analysts Frame Decline as Short-Term Correction
Securities firms interpret the recent adjustment as a short-term correction rather than a trend reversal, noting that fundamentals including earnings and exports remain solid. Lee Kyung-min, researcher at Daishin Securities, stated that the recent stock market plunge is considered a short-term adjustment within a mid-to-long-term upward trend phase, adding that if oil price declines make price stability visible and earnings improvement continues due to strong exports and exchange rate effects, the valuation attractiveness of KOSPI and major sectors will be highlighted again.
FAQ
What caused Korean stocks to surrender early gains on the 9th day?
Individual investors sold over 2 trillion won worth of shares on the 9th day, offsetting institutional purchases exceeding 1.86 trillion won and foreign buying of 280 billion won. KOSPI closed at 7291.91 (+0.62%) and KOSDAQ at 794.00 (+1.15%) after surrendering most of their intraday advances that had exceeded 3% at the opening.
Why did SK Hynix outperform other large-cap Korean stocks?
SK Hynix closed 5.30% higher on the 9th day ahead of its NASDAQ American Depositary Receipt (ADR) listing scheduled for the 10th day, showing relatively strong performance while Samsung Electronics closed nearly flat and major stocks including Hyundai Motor (-3.68%) and Kia (-7.65%) declined.
How do analysts view the recent Korean stock market decline?
Securities firms interpret the recent adjustment as a short-term correction within a mid-to-long-term upward trend rather than a trend reversal. Lee Kyung-min of Daishin Securities stated that fundamentals including earnings and exports remain solid, and valuation attractiveness will be highlighted again if price stability becomes visible and earnings improvement continues.
