The South Korean stock market experienced a significant decline on June 5, driven by a correction in U.S. tech stocks and foreign selling pressure. The KOSDAQ index fell below 1000 during the session, marking a drop into the 900s for the first time in three months. However, it later recovered as bargain hunters entered the market.
According to the Korea Exchange, as of 1:22 PM, the KOSDAQ index was down 43.53 points (-4.15%) at 1006.20. The index opened at 1035.22, down 14.51 points (-1.38%), and continued to decline.
During the session, it dropped to 992.80, a decrease of 56.93 points (-5.42%), falling below the 1000 mark for the first time since March 4. Although it later regained the 1000 level, it still showed a decline of over 4%.
Foreign selling has been a major factor pulling down the index, with foreign investors net selling 223.3 billion won. In contrast, individual and institutional investors bought a net 18 billion won and 206.5 billion won, respectively, indicating some bargain hunting.
Most of the top market capitalization stocks also showed weakness. Notable declines included Alteogen (-3.32%), EcoProBM (-7.85%), EcoPro (-7.07%), Rainbow Robotics (-6.58%), JUSUNG Engineering (-13.57%), Kolon TissueGene (-8.49%), Rino Technology (-5.52%), Samchundang Pharmaceutical (-4.85%), and HLB (-4.00%). However, Wonik IPS saw a gain of 3.54%.
The KOSPI also experienced a downturn, recording a drop of 452.19 points (-5.23%) to 8187.35 at the same time. A trading halt was triggered at 9:08:25 AM due to a sharp decline in the KOSPI 200 futures index.
In the securities market, foreign and institutional investors net sold 2.8331 trillion won and 138.6 billion won, respectively, while individuals net bought 2.7849 trillion won. Among the top market capitalization stocks, Samsung Electronics (-5.26%), SK Hynix (-8.36%), SK Square (-7.64%), Hyundai Motor (-3.71%), LG Energy Solution (-2.37%), Samsung Life Insurance (-7.88%), and Samsung C&T (-15.51%) all declined. Conversely, Samsung Electro-Mechanics (3.03%) and HD Hyundai Heavy Industries (1.61%) saw gains.
The sharp decline is attributed to the correction in U.S. tech stocks. Overnight, the New York Stock Exchange saw semiconductor-related stocks such as Broadcom (-12.59%), Micron Technology (-7.74%), SanDisk (-3.92%), and Western Digital (-3.13%) all decline significantly.
Lee Kyung-min, a researcher at Daishin Securities, stated, "The sharp drop in the semiconductor sector in the U.S. negatively impacts investor sentiment for the domestic semiconductor sector. At the same time, the recent surge has led to increased short-term overheating concerns among major leading stocks, dampening investor sentiment."
* This article has been translated by AI.
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