Seoul Stocks: KOSPI and KOSDAQ Daily — 2026-10-07
The KOSPI closed at 6,803.90, a nearly 2% drop and its lowest level since mid-September, as foreign investors continued heavy selling of semiconductor giants ahead of Samsung Electronics' earnings. While the broader index slid below the psychological 7,000 mark, the KOSDAQ showed resilience with a surge in retail-led sectors, highlighting a divergent market sentiment driven by macro concerns and sector-specific rotation.
Seoul Stocks: KOSPI and KOSDAQ Daily — 2026-10-07
Top developments
Foreign Investors Dump ₩20 Trillion in One Month
Foreign investors sold a net 20.3 trillion won ($15.1 billion) worth of shares on the KOSPI over the past month leading up to October 7, with 85% of this outflow concentrated in Samsung Electronics and SK hynix. This massive capital flight has dragged the benchmark index down, with foreign selling exceeding 3 trillion won in a single day on October 7 alone. The sustained outflow reflects global risk-off sentiment and profit-taking in high-flying chip stocks amid rising US bond yields.
KOSPI Slides to 6,803 as Tech Giants Drag Index
On October 7, the KOSPI fell 137.49 points (1.98%) to close at 6,803.90, marking its second consecutive day of decline and breaching the 6,900 support level. The decline was led by Samsung Electronics, which dropped to 269,500 won, and SK hynix, which fell to 1.724 million won. Investors cited rising US Treasury yields and caution ahead of Samsung’s third-quarter results as primary drivers for the sell-off in large-cap tech stocks.
KOSDAQ Surges 3% Amid Sector Rotation
In stark contrast to the KOSPI's weakness, the KOSDAQ index surged approximately 3% on October 6 and maintained strength into early October 7 trading, closing at 898.43 after a volatile session. This divergence was driven by foreign and institutional buying in smaller-cap stocks and sectors like cosmetics and pharmaceuticals, which benefited from specific earnings expectations rather than macro-driven tech selling. The split performance highlights a rotation away from mega-cap semiconductors toward mid-cap growth stories.
Local view
Local financial media are focusing heavily on the "wait-and-see" approach ahead of Samsung Electronics' earnings report. Financial News noted that the market's weakness is exacerbated by the conclusion of buyback programs for major semiconductor firms, with Samsung ending its buyback this week and SK hynix next week, removing a key support mechanism for share prices. Seoul Economic Daily highlighted that the foreign outflow has been persistent, with foreigners selling for multiple consecutive days, putting pressure on the KRW-WON exchange rate which dipped to the 1,340-won range.
Context & numbers
- KOSPI Close (Oct 7): 6,803.90 (-1.98%)
- KOSDAQ Close (Oct 7): 898.43
- Foreign Net Selling (Oct 7): ~3 trillion won (KOSPI)
- Monthly Foreign Outflow: 20.3 trillion won (last 30 days)
- Key Movers: Samsung Electronics (269,500 won), SK hynix (1,724,000 won)
- Exchange Rate: USD/KRW traded in the 1,340 range.
The market is currently navigating a dual threat of high US interest rates reducing the appeal of emerging markets and specific sector fatigue in semiconductors. The Value-up program continues to be a background stabilizer, with over 750 firms having disclosed plans covering nearly 88% of KOSPI market value, but short-term flows remain dominated by global macro trends.
On the radar
- Samsung Earnings Release: Investors are awaiting Samsung Electronics' third-quarter preliminary results, expected imminently, which will set the tone for the semiconductor sector's next leg.
- Short Selling Activity: Short selling volume remains elevated, with SK hynix seeing significant short trading volumes, indicating bearish bets despite long-term fundamentals.
- FOMC Minutes: Global markets are digesting the latest FOMC minutes, with Korean investors watching for signals on rate cuts that could reverse foreign outflows.
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