Seoul Stocks: KOSPI and KOSDAQ Daily — 2026-10-10
The KOSPI suffered a significant correction this week, retreating to the 6,600 level despite Samsung Electronics reporting record third-quarter profits. Foreign and institutional investors aggressively sold shares, dumping approximately ₩4 trillion in a single session on October 8, outweighing strong retail buying. The market continues to underperform regional peers like Japan and Taiwan, driven by profit-taking in semiconductor heavyweights and broader global yield concerns.
Seoul Stocks: KOSPI and KOSDAQ Daily — 2026-10-10
Top developments
KOSPI Plunges to 6,600 Level Despite Samsung’s Record Q3
On October 8, the benchmark KOSPI index tumbled 2.62% to close at 6,625.93, marking a three-day losing streak and a retreat from recent highs. This decline occurred even though Samsung Electronics announced a record third-quarter operating profit of ₩107 trillion, beating market expectations. The disconnect highlights that investor sentiment is currently driven more by macro headwinds and foreign outflows than by corporate earnings fundamentals.
Foreign and Institutional Investors Dump ₩4 Trillion in One Session
The primary driver of the week’s volatility was massive selling by foreign and institutional investors. On October 8 alone, these groups net-sold approximately ₩4 trillion worth of shares, with semiconductor giants Samsung Electronics and SK Hynix bearing the brunt of the selling pressure. Over the past month, foreign investors have net-sold ₩20.3 trillion ($15.1 billion) in Korean stocks, significantly reducing their holdings in key tech names.
Retail Investors Absorb Selling Pressure
In contrast to institutional flows, retail investors have remained net buyers throughout the downturn. On October 8, individuals bought over ₩1.2 trillion worth of shares, attempting to cushion the fall. However, this retail demand was insufficient to counteract the scale of foreign and institutional offloading, leading to continued downward pressure on major indices.
KOSDAQ Outperforms KOSPI with 3% Surge on October 6
While the KOSPI struggled, the small-cap-heavy KOSDAQ index showed resilience, surging nearly 3% on October 6 to close at 919.92. This divergence suggests that capital is rotating into smaller, domestic-focused stocks as large-cap semiconductor leaders face profit-taking. However, the KOSDAQ also faced volatility, dipping below 900 briefly on October 7 before recovering.
KOSPI Trails Regional Peers as Japan and Taiwan Hit Records
A stark divergence has emerged between South Korea’s market performance and its Asian neighbors. While the Nikkei 225 and Taiex hit record highs, the KOSPI has fallen 4.72% over the past month and is trading more than 27% below its June peak. Analysts attribute this underperformance to Korea’s heavy concentration in memory chips, which are facing valuation adjustments, compared to broader exposure in other markets.
Local view
Local financial media, including Financial News and Korea Economic Daily, have focused heavily on the "buying the dip" narrative among retail investors versus the structural selling by foreigners. Reports highlight that despite Samsung's "record" earnings, the market is reacting to "self-destructive" factors like the end of share buyback programs for Samsung and SK Hynix, which removes a key support level for stock prices. Chosun Biz notes that the retail market is battling foreign selling, but the sheer volume of foreign outflows (₩20 trillion monthly) indicates a fundamental shift in global allocation away from Korean tech.
Context & numbers
- KOSPI Close (Oct 8): 6,625.93 (Down 177.97 points / -2.62%)
- Foreign Net Selling (Oct 8): Approx. ₩2.6–3.6 trillion depending on specific intraday metrics reported by different outlets; combined with institutions, total selling exceeded ₩4 trillion.
- Monthly Foreign Net Selling: ₩20.3 trillion ($15.1 billion) over the past month.
- Samsung Electronics Q3 Operating Profit: ₩107 trillion (Record high).
- SK Hynix & Samsung Stock Moves: Both dropped over 2.4% on October 8 amid the broader sell-off.
- Value-Up Programme: 756 companies have filed value-up plans, covering 87.7% of KOSPI market value as of early September, with disclosures widening ahead of November's low-PBR list release.
On the radar
- November Low-PBR List Release: The Korea Exchange is scheduled to release its first list of companies with low price-to-book ratios in November, a key component of the Value-up programme. Increased disclosures are currently underway.
- End of Share Buybacks: Investors are monitoring the impact of the conclusion of share buyback programs for Samsung Electronics (this week) and SK Hynix (next week), which previously provided price support.
- Global Bond Yields: Continued caution is expected as elevated US bond yields and inflation data continue to weigh on tech valuations globally, affecting Korea's chip-heavy index disproportionately.
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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