Foreign investors have been aggressively selling shares of Samsung Electronics and SK Hynix. Over the past month, foreign investors have net sold approximately 69 trillion won in the domestic stock market, with the majority of the selling concentrated in these two semiconductor giants. Meanwhile, individual and institutional investors have countered with significant net buying, helping to defend the KOSPI index above the 8000 mark.
According to the Korea Exchange, from May 7 to June 5, foreign investors net sold 69.4 trillion won worth of shares in the KOSPI market. During the same period, individual investors net bought 56.4 trillion won, and institutions purchased 12.1 trillion won, absorbing the foreign sell-off.
The foreign selling was primarily focused on large-cap semiconductor stocks. Samsung Electronics topped the list with net sales of 30.1 trillion won, while SK Hynix saw net sales of 27.3 trillion won. Together, these two stocks accounted for the majority of the total foreign net selling, totaling 57.4 trillion won.
Other notable stocks in the top net selling list included Hyundai Mobis (3.3 trillion won), LG Electronics (2.6 trillion won), Hyundai Motor (1.9 trillion won), LG Innotek (1.6 trillion won), Samsung Electronics preferred shares (1.1 trillion won), NAVER (996.9 billion won), Samsung Electro-Mechanics (848.4 billion won), and Doosan Enerbility (687.6 billion won). This trend is interpreted as profit-taking primarily in the semiconductor, electronics, and automotive sectors.
Despite the large-scale foreign selling, the stock market has continued its bullish trend. The KOSPI rose approximately 9% from 7490.05 on May 7 to 8160.59 on June 5. During this period, the KOSPI experienced significant volatility, surging over 8% in a single day on May 21, followed by a more than 5% drop on June 5. However, steady inflows of individual capital have supported the upward trend.
Market analysts suggest that given the increased short-term overheating risks, the market may take a breather this week. There is potential for continued profit-taking due to the recent rapid rise, coupled with the lack of improvement in foreign investor sentiment.
Additionally, on June 5 (local time), the three major U.S. indices—the Dow Jones Industrial Average (-1.35%), S&P 500 (-2.64%), and NASDAQ Composite (-4.18%)—all experienced sharp declines. Notably, the Philadelphia Semiconductor Index, which comprises the 30 largest semiconductor stocks, fell 10.26% to close at 12,220.76, marking its largest drop since the onset of the COVID-19 pandemic in March 2020.
Seo Sang-young, a researcher at Mirae Asset Securities, stated, "Following Broadcom's earnings announcement, profit-taking has expanded across the semiconductor sector. The market is beginning to assess whether it can maintain the current high growth expectations rather than focusing on the potential slowdown in AI demand."
He added, "The Oracle earnings report scheduled for June 10 will be a critical juncture to evaluate the recently raised concerns about a peak in AI investments. If AI demand is confirmed, the correction in semiconductor stocks may be a temporary pause, but if expectations fall short, valuation pressures could emerge across AI-related stocks."
Meanwhile, the foreign selling trend has also impacted the foreign exchange market. Analysts suggest that as foreign investors sold domestic stocks and converted their proceeds into dollars, demand for dollars increased, putting upward pressure on the won-dollar exchange rate. According to the Seoul foreign exchange market, the won-dollar exchange rate reached a peak of 1561.5 won during overnight trading that closed on June 6, marking the highest level since March 6, 2009, during the global financial crisis (intraday high of 1597.0 won).
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.