Korean Market Briefing — 2026-05-13

Market Snapshot

• KOSPI: 7,844.01 (+200.86p, +2.63%)*
• KOSDAQ: Closed slightly lower
• Won/Dollar Rate: 1,490.6 KRW (+0.7 KRW, 4th straight daily gain, one-month high)
• Market Sentiment: A rollercoaster session. The index dipped to the low 7,400s early on due to massive foreign selling, but rebounded sharply as retail and institutional investors stepped in. Volatility is at its highest since the US-Iran airstrikes in March.

*Based on Financial News closing data.

Order Flow (KOSPI)

• Foreigners: Net selling — Offloaded approx. ₩1.05 trillion in the first 9 minutes alone. Cumulative net selling over the past 5 sessions exceeds ₩24 trillion, primarily targeting SK Hynix and Samsung Electronics (combined estimated sell-off of ₩5.3 trillion).
• Institutions: Net buying — Net bought ₩251.6 billion early in the session, helping to lead the semiconductor rebound.
• Individuals: Heavy net buying — Net bought ₩792.7 billion early today, following a massive ₩6.68 trillion buying spree on May 12th.

Top 5 Key Stories

KOSPI hits record high of 7,844.01

• What happened?: After plunging 2.29% to 7,643.15 yesterday, the KOSPI roared back today. Strength in Samsung Electronics (+1.79%) and SK Hynix pushed the index to a new record close of 7,844.01.
• Impact: The market surged 2.63%. SK Hynix and Hyundai Motor reached new all-time highs, with reports indicating the number of "Emperor Stocks" (high-priced shares) has increased from 10 to 11.

Foreigners net-sell ₩24T in 5 days; pivot to robotics/power

• What happened?: Foreigners have offloaded over ₩24 trillion in five days to lock in profits, including dumping over ₩1 trillion in just 9 minutes today. However, they are still buying into specific sectors like robotics and power infrastructure.
• Impact: Extreme early-morning volatility and upward pressure on the exchange rate. Retail investors continue to act as the market's shock absorber.

SK Hynix valuation surpasses Samsung Electronics

• What happened?: SK Hynix's PBR (Price-to-Book Ratio) reached 6.79x, overtaking Samsung Electronics (6.77x) for the first time. This marks a shift in the local semiconductor landscape as Hynix dominates the HBM market.
• Impact: SK Hynix continues to see strong interest, remaining the top-searched stock.

Won/Dollar rate hits 1,490.6, one-month high

• What happened?: The exchange rate rose for the fourth consecutive day, closing at 1,490.6 KRW. It had spiked by 17.5 won the previous day.
• Impact: Upward pressure remains, with some eyeing the 1,500 won mark later this week.

Stricter "Penny Stock" delisting rules starting July

• What happened?: The Financial Services Commission approved new regulations to tighten delisting criteria, including rules targeting "penny stocks" (under 1,000 KRW). Criteria for small-cap delistings (KOSPI under ₩30B, KOSDAQ under ₩20B) have also been strengthened.
• Impact: Investors are growing wary of low-priced and small-cap stocks, potentially accelerating a flight to quality.

Leading Sectors & Themes

Semiconductors (Samsung Electronics, SK Hynix)

• Trend: Strong rebound. Despite initial weakness due to labor strike concerns at Samsung, shares finished up 1.79%.
• Key Stocks: Samsung Electronics (+1.79%), SK Hynix (strong, near record high, price: 1,976,000 KRW), Samsung C&T (+6% range), SK Square (+8% range).

Humanoids & Robotics

• Trend: A key target for foreign investors. Hyundai Motor and LG Electronics are rising on humanoid expectations.
• Key Stocks: Hyundai Motor (record high: 710,000 KRW), LG Electronics (continued strength).

KOSDAQ, Batteries, & Biotech

• Trend: KOSDAQ closed slightly lower as funds shifted toward large-cap semiconductors on the KOSPI.

Notable Movements

• Top Gainers: SK Square (+8%), Samsung C&T (+6%), Hyundai Motor (record high: 710,000 KRW).
• Top Losers: REITs (year-to-date lows), NAVER (falling out of Top 20 market cap), Kakao (falling out of Top 20 market cap).

Global Context

1. US Tech/Semiconductor Rally Stalls: US tech shares hit a wall yesterday on profit-taking. The S&P 500 fell 0.16%.
2. US-Iran Tensions & Dollar Strength: The ongoing standoff and dollar strength are keeping the Korean won weak and volatile.

Tomorrow’s Checklist

1. Exchange Rate: Will the won hit 1,500 KRW? Watch for potential intervention by financial authorities.
2. Foreign Flow: Check early session trends to see if the 5-day selling streak is breaking.
3. US CPI Data: Monitor market reaction to the US April CPI results announced late on the 13th.

Investor Action Items

• Morning Check: Observe foreign buy/sell trends from 9:00 AM to 9:30 AM.
• Portfolio Review: Assess exposure to FX-sensitive stocks (exports vs. imports).
• Delisting Check: If you hold small-caps or low-priced stocks, verify their market cap and share price against the new July regulations.