The KOSPI index has fallen below the 6,400 mark for the first time in over two months, driven down by a more than 4% drop in major semiconductor stocks like Samsung Electronics and SK Hynix. This decline comes amid rising government bond yields, a surge in international oil prices, escalating tensions between the U.S. and Iran, and a significant outflow of foreign investment.
The KOSPI's drop is particularly notable compared to other major global stock markets, which have seen gains recently. Over the past month, while the KOSPI has plummeted nearly 8%, other indices have risen. Analysts express skepticism about the memory semiconductor supercycle, predicting that a bearish market will persist for the time being.
According to the Korea Exchange, the KOSPI closed at 6,384.24 on October 12, down 241.69 points (3.65%) from the previous trading day. This marks the first time the index has dipped below 6,300 since August 11.
The index opened at 6,578.17, down 47.76 points (0.72%), and fell as low as 6,368.49 during the day. Foreign investors sold a net 2.2 trillion won, continuing a five-day streak of selling, while institutions and trusts sold 1.113 trillion won and 3.282 trillion won, respectively. Individual investors were the only group to buy, purchasing 1.4689 trillion won, but their efforts were insufficient to support the index.
The KOSPI's decline contrasts sharply with the performance of major global indices. The S&P 500 in the U.S. rose 2% from September 11 to October 9, while the Nasdaq increased by 3.9% and Taiwan's TAIEX climbed 6.8%. This growth reflects optimism surrounding AI and semiconductor companies, which has positively impacted their stock prices. In contrast, the KOSPI has seen a nearly 8% drop during the same period.
Experts indicate that the outlook for the stock market remains bleak. The lack of foreign investor confidence, combined with a depletion of support from other corporations that had been buying back shares to stabilize the index, has weakened the fundamentals of the Korean stock market. Han Ji-young, a researcher at Kiwoom Securities, stated, "The market's concerns regarding the narrative of a supercycle in semiconductors, along with uncertainties about profit visibility and sustainability beyond 2027, continue to create unease. The upward revision of earnings estimates for Samsung Electronics and SK Hynix will be crucial for any potential rebound."
* This article has been translated by AI.
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