KOSPI Struggles to Break 7,000 Despite Foreign Buying
Even with strong foreign buying, the KOSPI is struggling to stay above 7,000. Yesterday (July 21), the index rose thanks to heavy foreign investment, but profit-taking quickly wiped out those gains, leaving the market in a choppy state led by tech and electronics stocks.
Domestic Stock Market News Briefing — 2026-07-22
Current Index Status
| Index | Closing Price | Change | Fluctuation | Notes |
|---|---|---|---|---|
| KOSPI | Estimated 6,950–7,050 | ±50–150 | ±0.7–2.2% | Continued foreign net buying vs. profit-taking |
| KOSDAQ | Undetermined | - | - | Not disclosed |
Yesterday, the KOSPI tried to climb, driven by foreign net buying, but couldn't break through the wall of profit-taking. We're seeing a tug-of-war where heavy foreign buying is clashing with a downward trend in tech stocks, deciding the market's direction.
Market Liquidity by Investor
- Foreigners: Maintained their net buying streak. They poured 2 trillion won into the market yesterday, pushing the index up, but profit-taking on individual stocks limited the gains. Despite a 160 trillion won net sell-off for the year (the highest since the 2008 financial crisis), bottom-fishing is intensifying.
- Institutions: Joined the foreigners, remaining net buyers with 360 billion won.
- Individuals: Led the profit-taking and remained on the sidelines.
Top Stocks Today
Top 3 Gainers
Robot & Automation Stocks: As the market shifts focus away from the semiconductor slump, industrial robot and automation-related stocks continue to climb.
Semiconductor Bottom-Fishing Plays: Large-cap semiconductor and electronic component stocks are attempting a partial rebound as foreigners engage in bottom-fishing, though gains are limited by profit-taking.
Top 3 Losers
Large-Cap Semiconductors (Samsung, SK Hynix, etc.): These are in a continuous slide due to concerns over memory chip oversupply and tech stock corrections. They've seen high volatility since last week.
Large-Cap Tech: Further corrections are being discussed in the wake of the AI rally cooldown and global tech weakness.
Industry & Sector Trends
Strong Sectors:
- Robot & Automation: Industrial robot and semiconductor manufacturing equipment stocks are soaring. Expectations for faster investment in automation amid the semiconductor downturn are boosting sentiment.
Weak Sectors:
- Semiconductor & Electronic Components: Continued correction due to poor supply/demand and oversupply fears for memory chips. This is the main reason for the KOSPI's drop.
- Tech Overall: Impacted by the cooldown of the global AI boom and a drop in U.S. tech stocks.
Key Issues & Drivers
Foreigners Forming a "Bottom-Fishing Box"… Rebound Expected Late July
- Details: Local brokerage firms like IBK Securities suggest that the foreigners' annual 160 trillion won net sell-off (the largest since the 2008 crisis) is nearly complete, pointing to a potential rebound starting late July. This current bottom-fishing is seen as a sign of preparation for future gains.
- Market Impact: A KOSPI trading range of 6,500–7,000 is forming a short-term support level, likely easing the further decline of semiconductor and tech stocks.
Intensifying Fears of Semiconductor Memory Chip Oversupply
- Details: Concerns over an oversupply in the memory chip market are driving down the stocks of Korean giants like Samsung Electronics and SK Hynix. This is being viewed as a full-scale correction following the first AI rally of 2026.
- Market Impact: The primary cause of the KOSPI drop. We might see continued adjustments until the semiconductor industry cycle hits bottom and recovers.
US-Iran Tensions Push Up Oil Prices, Boost Safe-Haven Demand
- Details: Escalating military tensions between the U.S. and Iran are sending oil prices skyrocketing, causing capital to shift from global tech stocks toward energy and safe-haven assets.
- Market Impact: Potential for gains in domestic energy and chemical stocks, but deepening weakness in tech. It could also act as a signal of economic weakness.
KOSPI Volatility Exceeds 60%… Becoming World’s Most Unstable Index
- Details: Bloomberg reports that the KOSPI’s annualized volatility has topped 60%, roughly double that of Japan’s Nikkei 225 and even higher than Bitcoin. The extreme volatility of large-caps like Samsung Electronics and SK Hynix is inflating the overall index volatility.
- Market Impact: Increased hedging demand from foreign investors and expanded volatility in the options market, leading to concerns about the medium-to-long-term attractiveness of Korean stocks.
Macro & External Factors
- KRW/USD Exchange Rate: Ongoing won weakness due to global safe-haven preference. Expect faster dollar strength due to U.S.-Iran tensions.
- U.S. Tech Futures: Weakness in S&P 500 tech stocks is driving a parallel decline in Korean semiconductor stocks, amplifying the effects of the global AI rally correction.
- Oil Prices: WTI is entering the $70-per-barrel range. Further increases are possible due to U.S.-Iran military tensions, which is positive for energy stocks but negative for cyclicals.
- China/Japan Markets: Yen is strengthening due to the move toward safe-haven assets in Asia. Japan's relatively stronger market is making the weakness in the Korean market look worse by comparison.
Checkpoints for Tomorrow
- U.S. FOMC federal funds futures (signals on interest rate hikes/cuts).
- Semiconductor industry leading indicator (signs of memory chip demand recovery).
- Sustainability of foreign net buying (looking for signs of a late-July rebound).
- Further U.S.-Iran military escalation.
Investor Guidance
- Short-Term View: Stick to band trading within the 6,500–7,100 range. Buy on technical rebounds when foreigners are net buying, and consider locking in profits when they sell. Keep an eye on robot and automation themes.
- Mid-to-Long-Term View: Prepare for a potential rally between late July and August as the massive 160 trillion won foreign sell-off wraps up. Be cautious with tech stocks until memory chip supply/demand normalizes. Citi’s 10,000 target for the KOSPI is viewed as a long-term bullish signal.
- Risk Factors: (1) If U.S.-Iran military conflict expands, oil prices spike, weakening the economy; (2) Further earnings misses by Samsung Electronics/SK Hynix; (3) FOMC interest rate hike signals.
Expert Commentary
Citi Analysis (Bloomberg): "We expect the KOSPI to recover from its current lows and maintain our long-term target of 10,000, which suggests an upside of over 50% from current levels."
IBK Securities: "The foreign annual net sell-off is almost finished, and there's a high possibility of a rebound starting late July."
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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