KOSPI Closes Above 7,000 as Institutional Buying Drives Chip Rally
Institutional inflows of over 3.1 trillion won pushed the KOSPI to 7,007.72, led by a 5% jump in Samsung Electronics.
Key points
- KOSPI closed at 7,007.72, up 1.65%, as institutions net bought 3.15 trillion won.
- Samsung Electronics common shares rose nearly 5% following a 2.78% gain in the U.S. Philadelphia Semiconductor Index.
- Korean semiconductor exports hit a record 34.1 billion dollars for September 1-20, up 259.4% year-on-year.
South Korea's KOSPI index closed at 7,007.72 on the 21st, marking its first recovery of the 7,000 threshold in seven sessions. The index gained 113.49 points, or 1.65%, as semiconductor equities rallied following positive signals from the U.S. market and policy statements regarding artificial intelligence development.
According to data reported by Chosunbiz, institutional investors and other corporations were the primary drivers of this recovery. These groups collectively net bought 3.15 trillion won, offsetting significant selling pressure from individual investors and foreign traders who reduced their positions in the domestic market.
Institutional flows dominate market recovery
Institutions and other corporations recorded net purchases of 1.49 trillion won and 1.66 trillion won, respectively. Securities firms alone contributed 1.25 trillion won in net buying. In contrast, individual investors net sold 2.98 trillion won, while foreigners exited with net sales of 171.9 billion won after turning sellers in the afternoon session.
Pension funds shifted from net buyers of nearly 200 billion won during intraday trading to net sellers of 63 billion won before the close. This divergence highlights a split in investor sentiment, with long-term institutional capital accumulating exposure while retail and foreign participants took profits on the recent gains.
Semiconductor leaders drive index performance
Samsung Electronics led the charge, with its common shares rising nearly 5% and its preferred shares climbing 6.07%. Other Samsung Group affiliates, including Samsung C&T and Samsung Life Insurance, also posted gains of 4.70% and 2.65%, respectively. SK hynix finished the session slightly higher, joining the broader semiconductor strength.
This local performance mirrored trends in U.S. markets, where the Philadelphia Semiconductor Index rose 2.78% on the 18th. The rally was supported by gains in major U.S. peers such as SanDisk, Seagate, and Micron, creating a positive cross-border sentiment for Korean chipmakers.
Policy support and export records boost confidence
Investor confidence was reinforced by U.S. President Donald Trump's recent assurance that the government would not hinder AI industry growth. His announcement of an "AI Force" to coordinate policy and compete with China alleviated concerns about regulatory overreach that had weighed on the sector previously.
Fundamental data further supported the rally, with Korea's semiconductor exports surging 259.4% year-on-year to a record 34.1 billion dollars for the first 20 days of September. Total exports rose 78.3% to 71.4 billion dollars, underscoring strong global demand for Korean-made chips despite high oil prices and bond yields.
