The KOSPI index fell to the 6,300 level due to strong selling pressure from foreign and institutional investors. Notably, Samsung Electronics, the market leader, dropped more than 6%, prompting frustration among investors.
As of August 3, the KOSPI index recorded a decline of 228.86 points (-3.38%) to 6,370.93 compared to the previous trading day. Foreign investors sold a net 25.487 trillion won, while institutions sold a net 14.344 trillion won, significantly pushing down the index.
The primary reason for the sharp decline is attributed to profit-taking following recent gains. Samsung Electronics traded at 242,500 won, down 20,000 won (-7.6%) from the previous trading day (July 31).
According to an analysis from Toss Securities, the factors contributing to Samsung's decline include: a significant amount of profit-taking following the previous day's surge, concerns over a slowdown in NAND flash memory prices due to Kioxia's disappointing performance, and the combined effects of rising U.S. Treasury yields and net selling by foreign and institutional investors. SK Hynix, a related company, also saw a 6.5% drop, trading at 1,605,000 won, indicating concentrated selling pressure on the top two semiconductor firms.
Market participants are divided on whether a rebound will occur in the afternoon of August 3. Experts believe that the scale of net selling by foreign and institutional investors, amounting to trillions of won, makes an immediate rebound unlikely. However, they suggest that if the index's decline exceeds 3%, there could be a technical rebound driven by individual and pension fund investors seeking bargain opportunities, which might help mitigate the losses. In particular, if analyses indicate that concerns over the NAND market are overly reflected, it could attract bargain hunters and provide some support against further declines.
Conversely, the recent market drop has sparked various predictions and conspiracy theories among online investor communities. Many users express optimism, stating, "The index will definitely rebound in the afternoon," and "Now is the time to buy at the bottom," while others raise concerns about the stock market's volatility.
Notably, a post titled 'Chinese Strategy Destroying the Korean Stock Market' in a Toss Securities community has stirred controversy. The author claims, "The current trend in the Korean stock market mirrors that of the Chinese stock market in 2015. Both experienced chaotic leverage-driven bull markets that quickly burst into bubbles," comparing the KOSPI index with the 2015 Chinese stock market graph, drawing attention to their similarities.
* This article has been translated by AI.
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