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Foreign investors unloaded nearly 7 trillion won (about $4.58 billion) in a single session, but experts say the massive selling reflects short-term profit-taking and portfolio rebalancing after a sharp rally — not a broader exodus from the Korean market. Analysts add that the current boom remains in the early stages of a semiconductor supercycle, leaving the upward trend intact.
According to Korea Exchange, the Kospi tumbled more than 6 percent in early trading Friday, briefly falling below the 8,100 level as large-cap semiconductor stocks led the selloff. Foreign investors have now posted net selling for 20 consecutive trading sessions, dragging the index lower.
On Thursday, the Kospi closed down 162.08 points, or 1.84 percent, at 8,639.41. Foreign selling was the primary driver of that decline as well.
In the main bourse, retail investors and institutions net purchased 5.1125 trillion won and 1.8124 trillion won, respectively, while foreign investors sold a net 6.9529 trillion won, pulling the index down.
The foreign selling streak ran uninterrupted from May 7 through Friday — 20 consecutive trading sessions. Cumulative net selling from the start of the year through Thursday reached a record 109.5688 trillion won, surpassing the roughly 25 trillion won seen during the 2020 COVID-19 pandemic and the approximately 62 trillion won recorded during the 2007–2008 global financial crisis.
The selling weighed on the market's recent leaders: Samsung Electronics fell 2.50 percent, SK Hynix dropped 2.63 percent, and Samsung Electro-Mechanics slid 5.35 percent.
Given the relentless foreign selling, investors are asking whether now is the time to exit Samsung Electronics and SK Hynix.
The financial investment industry broadly believes the heavy foreign selling is not driven by a pessimistic outlook on the Korean market, but rather by profit-taking and portfolio rebalancing after a recent sharp run-up. Analysts note that the memory supercycle trend remains intact and that the current boom is still in its early phase.
Yeo Un-bong, a doctor with a Wall Street background, said Monday on his YouTube channel that foreign investors' persistent selling of Samsung Electronics and SK Hynix shares reflects profit-taking after a short-term surge and rebalancing of asset weightings. He maintained a positive view on both stocks.
He added that explosive AI demand and a shortage of HBM supply have pushed even standard DRAM prices higher, cementing a strong profit structure for both companies. He said experts view the current boom as the early stage of a long-term supercycle, and that the upward trend remains intact.
He cautioned, however, that share prices have already risen substantially, so investors should avoid going all-in or chasing the rally. Instead, he advised using discretionary funds and spreading purchases over time through a regular installment approach.
yeonjoo7@heraldcorp.com
