KOSPI swung 17.47% between 7378.10 and 8667.73 during June 29–July 3, driven by semiconductor selloff amid AI peak-out concerns. Global semiconductor correction and Apple memory price hike consumption fears triggered concentrated selling in large-cap chip stocks. Foreign investors dumped 19.43 trillion won from the main board in one week, part of 157 trillion won year-to-date outflows as global funds rebalanced after the first-half rally. The won-dollar exchange rate hovered in the 1540–1550 range during the period.
Foreign Investors Sold 19.43 Trillion Won in One Week
Foreign investors sold 19.43 trillion won from the securities market during June 29–July 3. Year-to-date foreign outflows from KOSPI reached 157 trillion won. Securities firms attributed the selloff to global fund rebalancing after Korea's first-half equity surge. High exchange rates accelerated capital outflows, with the won-dollar rate moving in the 1540–1550 range during the week. The National Pension Service resumed domestic stock rebalancing on July 1, selling 260 billion won in two days — far below market speculation of a 74 trillion won selloff.
Samsung Electronics Announces Q2 Earnings July 7
Samsung Electronics will release Q2 preliminary earnings on July 7. The securities industry consensus for operating profit stands at 84.8 trillion won. Analysts stated that results exceeding consensus could confirm memory market improvement and trigger a semiconductor sector rebound. Cho Ah-in, Samsung Securities researcher, said the Q2 results will visibly demonstrate industry conditions and could ease doubts about AI investment sustainability if figures surpass expectations. Lee Kyung-min, Daishin Securities researcher, forecasted a stock price rise if earnings beat estimates, noting that even below-consensus results would reverse sentiment unless they constitute a shock, given current undervaluation.
SK Hynix ADR Lists on Nasdaq July 10
SK Hynix's American Depositary Receipt (ADR) is scheduled to list on Nasdaq on July 10. Lee Jae-won, Yuanta Securities researcher, stated the listing could prompt valuation re-rating versus Micron and attract passive fund inflows. The event is identified as another variable for the semiconductor sector alongside Samsung's earnings release.
Analysts Set KOSPI Bands at 7200–9000
NH Investment & Securities set the weekly KOSPI forecast band at 7200–9000. Kiwoom Securities projected 7400–8600. Lee Kyung-min noted KOSPI's 12-month forward P/E ratio fell to 6.65x — below 7x for the first time since the financial crisis — marking extreme undervaluation. Han Ji-young, Kiwoom Securities researcher, stated that while daily volatility will remain high through events including the June FOMC minutes (July 9), Samsung earnings, and SK Hynix ADR listing, the direction should skew upward given historically low valuation burdens. The Bank for International Settlements (BIS) warned of AI investment bubble risks, comparing current AI investment surge speeds to the 1840s British railway mania (2.7x in 4 years) and 1990s dot-com bubble (1.9x in 5 years).
FAQ
What caused KOSPI's 17% swing during June 29–July 3?
The volatility stemmed from concentrated selling in semiconductor large-caps amid global chip sector correction, AI peak-out concerns, Apple memory price hike consumption fears, and Meta-driven AI overinvestment worries.
How much did foreign investors sell from KOSPI in one week?
Foreign investors sold 19.43 trillion won from the securities market during June 29–July 3, contributing to 157 trillion won in year-to-date outflows.
When does Samsung Electronics release Q2 earnings?
Samsung Electronics will announce Q2 preliminary earnings on July 7, with the securities industry consensus at 84.8 trillion won in operating profit.
