Korean Stock Market Rebounds as Retail Investors Step In

The Korean stock market quickly regained ground as local retail investors took advantage of a sell-off by foreign funds. According to Odaily, the KOSPI index rose over 1%, reversing an earlier decline of up to 3.2%. Samsung Electronics experienced a sharp drop of 6.1% in its stock price after failing to reach a wage agreement with its largest union, but the losses later narrowed. Samsung's competitor, SK Hynix, also recovered from early losses, alleviating concerns about overheating in AI-related stocks. The Korean memory chip maker's stock has surged over 100% in 2026. "The issue for the Korean stock market is concentration—it's essentially dominated by two stocks," said Dilin Wu, a strategist at Pepperstone Group responsible for cross-asset market research. "The AI hardware concept that drove the KOSPI to record highs remains valid, but execution risks on the supply side now make it harder to hold this view with conviction."