Korean stock market rebounds as local retail investors buy the dip amid foreign sell-off

Odaily Planet Daily reported that South Korea's stock market quickly recovered lost ground as local retail investors took the opportunity to buy stocks amid a wave of selling by foreign funds. The KOSPI index rose by over 1%, reversing an earlier decline of as much as 3.2%. Shares of Samsung Electronics once plunged 6.1% after failing to reach a wage agreement with its largest labor union, but later pared losses.

Rival SK Hynix reversed its early morning decline, shaking off investor concerns about overheating in AI-related stocks. Shares of the South Korean memory chipmaker have gained over 100% year-to-date in 2026. "For the Korean stock market, the problem is the concentration—this market is effectively dominated by just two stocks," said Dilin Wu, a cross-asset research strategist at Pepperstone Group. "The AI hardware narrative that drove the KOSPI to record highs remains intact, but supply-side execution risks are now on the table, making it harder to confidently hold that stance." (Jinshi Data)