Korean stock market ends 12 consecutive gains, foreign investment of 79.3 billion KRW buys the dip against the trend

Recently, South Korea’s stock market experienced a reversal. After a 12-day streak of strong gains, investors finally started to take profits on a large scale. The Korea Composite Stock Price Index (KOSPI) fell 18.91 points, or 0.39%, to close at 4,885.75. Although it briefly surged to 4,935.48, hitting a record high during the day, it ultimately couldn’t escape the wave of profit-taking. This correction also reflects the cautious sentiment in markets worldwide, driven by escalating geopolitical risks.

As of the previous trading day, the index had risen for 12 consecutive trading days since the beginning of the year, with a total increase of over 16%. However, investors who profited from this rally chose to cash out on the same day, putting noticeable pressure on the market at high levels.

Profit-taking sales, chips and autos both under pressure

On that day, trading volume reached 648.7 million shares, with a transaction value of 26.9 trillion won (about $182 billion), indicating that market participation remained high, but capital flow had shifted. The number of advancing stocks far exceeded declining ones—666 versus 228—showing that while individual stocks moved unevenly, major chipmakers and automakers were the main targets of selling.

As two sectors that led the market earlier this year, semiconductors and autos hit record highs but are now undergoing short-term corrections. Specifically, Samsung Electronics’ stock fell 2.75% to 145,200 won; SK Hynix also dropped 2.75%, to 743,000 won. The auto sector performed even worse, with Hyundai Motor down 0.21% to 479,000 won, and its subsidiary Kia dropping 3.3% to 163,900 won.

DaiSin Securities analysts noted, “These semiconductor giants, after reaching historic highs, are now in a short-term correction,” which is a common technical pattern after a high-level pullback.

Institutional profit-taking, foreign investors quietly accumulating

Interestingly, the three main investor groups showed divergent behaviors during this correction. Institutional investors sold a total of 6.062 trillion won worth of stocks, clearly demonstrating a selling attitude. Meanwhile, retail investors net bought 3.527 trillion won, indicating that small and medium investors remained optimistic.

Notably, foreign investors net bought 793 billion won worth of stocks. Although the scale was relatively small, in the context of the overall market correction, their contrarian positioning suggests confidence in Korea’s medium-term outlook. This buying and selling disparity reflects differing market judgments—institutions taking profits, while foreign investors quietly accumulated at lower prices.

Geopolitical clouds and rising market caution

This correction cannot be separated from the chain reaction in global markets. As U.S. President Trump’s Greenland affairs increased geopolitical tensions, risk assets worldwide came under pressure. The Korean won against the dollar also weakened, closing at 1,478.7, down 5 won from the previous day.

It’s worth noting that only defensive assets like Korea Electric Power Corporation (KEPCO), a state-owned utility, bucked the trend, rising 16.16% to 65,400 won. This further confirms that, amid risk aversion, investors favored defensive assets.

Looking at the full cycle, although the Korean stock market broke a 12-day winning streak, it still maintains a 16% year-to-date gain, with the long-term upward trend intact. The current correction may just be a pullback before resuming the rally. The 793 billion won from foreign investors could be a strategic move to prepare for a rebound ahead.