South Korea's KOSPI index fell about five% to approximately 6,200 points this week following a massive wave of net selling [1].
The decline marks a sharp reversal for the market, which had previously experienced an 18% surge to reach about 6,600 points [1]. This volatility highlights the sensitivity of the Seoul market to rapid profit-taking by major global and domestic players.
Foreign and institutional investors drove the downturn by selling roughly 4.8 trillion won [1]. Market participants said the sell-off was a correction after the previous Friday's rapid climb [1].
Heavyweight technology stocks bore the brunt of the decline. Samsung Electronics dropped about nine% to around 230,000 won [1]. Similarly, SK Hynix fell about nine% to approximately 1,560,000 won [1].
While the KOSPI struggled, the KOSDAQ index rose as a "buy-sidecar" [1]. This divergence suggests that while large-cap stocks faced heavy selling pressure, smaller companies remained attractive to some investors.
Reporter Ryu Hwan-hong of YTN said the KOSPI started the session down 3.6% at 6,358 and eventually closed down 5.1% at 6,257 [1]. He said that the leading stocks, Samsung Electronics and SK Hynix, both closed with nine% losses [1].
“Foreign and institutional investors sold roughly 4.8 trillion won”
The rapid oscillation between an 18% surge and a 5% drop indicates a period of high instability in the South Korean market. Because the decline was led by the KOSPI's largest components—Samsung and SK Hynix—the movement reflects a broader shift in sentiment regarding the semiconductor sector and the timing of profit realization by institutional funds.
