KOSPI Breaks 6,000 Points, Semiconductor Boom Resonates with Individual Investors

Last week, the domestic stock market surpassed the historic high of 6,000 points, once again setting a new record for the Korean stock market. The main drivers were the strong performance of the semiconductor industry and active participation by individual investors.

On the 27th of last month, the Korea Composite Stock Price Index (KOSPI) closed at 6,244.13 points, up 7.50% from the previous week. This rally was primarily led by major semiconductor companies such as Samsung Electronics and SK Hynix, amid concerns over global semiconductor supply shortages. In this environment, the passage of the third revision of the Commercial Act in the National Assembly also had a positive impact.

Despite increased volatility in the New York stock market due to sell-offs in AI-related stocks, Korea and Taiwan continued their strong performance, benefiting from the semiconductor market. This shows a different trend from the US market, with domestic individual investors heavily buying semiconductor stocks, sustaining the upward momentum.

However, foreign investors shifted to large-scale selling, causing the KOSPI to drop 1% in the latter half of the week and temporarily halting the eight-day winning streak. This was due to Nvidia CEO mentioning a proactive inventory buildup plan to meet demand in 2027, which weakened expectations of semiconductor price premiums.

Looking ahead, expectations for the profitability of the semiconductor industry and Korea’s economic recovery are likely to persist. In particular, the strong performance of Samsung Electronics and SK Hynix is expected to continue, despite some profit-taking by foreign investors. The trend toward increasing the semiconductor sector’s weight is expected to continue, which could help mitigate future market volatility.