No Damage to Fundamentals... KOSPI Below 7,400 Is a Buying Opportunity

Buy-Side Sidecar Triggered for KOSPI and KOSDAQ After Previous Day's Sharp Drop
Volatility Index Hits Highest Level Since April 2009
Corporate Earnings Estimates Continue Upward Trend

On the 9th, the KOSPI index opened at 7697.76, up 213.35 points from the previous trading day, displayed on the electronic board showing the domestic stock market status in the dealing room of Hana Bank in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1529.4 won, down 5.6 won from the previous trading day. Photo by Kang Jin-hyung, June 9, 2026.

The Korean stock market, which had plunged more than 8% due to the U.S.-driven semiconductor shock and rising interest rates, successfully rebounded. Although variables such as war, high interest rates, and a strong dollar continue to increase, corporate earnings remain solid, leading to forecasts that the domestic stock market will continue its upward trend. There are also opinions that, with the KOSPI index having fallen more than 15% from its previous peak and sitting in the low to mid-7000s, now is an appropriate time for bottom-fishing.

KOSPI·KOSDAQ Rebound After Previous Day’s Plunge

As of 10:06 a.m. on June 9, the KOSPI was trading at 7,709.35, up 3.01% from the previous trading day. At the same time, the KOSDAQ was up 5.56% at 962.10.

The KOSPI dropped 8.29% and the KOSDAQ 9.08% the previous day, triggering circuit breakers, but both markets rebounded on this day. It was the first time circuit breakers were triggered in both markets in three months, since the outbreak of war between the U.S. and Iran in March. With both markets rebounding within a day, buy-side sidecars (temporary suspension of program buy orders) were activated early in the session—at 9:12 a.m. for the KOSPI and at 9:30 a.m. for the KOSDAQ.

However, with increased market volatility, the KOSPI 200 Volatility Index (VKOSPI), known as Korea’s fear index, surged 12.98% to 86.58, entering the 80-point range. During the session, it even soared as high as 87.03. This marks the highest level since the index was first introduced on April 13, 2009.

The KOSPI’s successful rebound is attributed to the easing of Middle East war risks and a rebound in U.S. semiconductor stocks. Overnight, the Nasdaq index rose 0.86% in New York, while the Standard & Poor’s (S&P) 500 index climbed 0.30%. Semiconductor companies such as Micron (up 9.87%), SanDisk (up 5.30%), ASML (up 6.54%), and Lam Research (up 6.98%) saw significant gains. Nvidia also rose 1.73%, while Intel (up 11.19%) surged at the close on news that it would cooperate with Google’s parent company Alphabet on chip production. The Philadelphia Semiconductor Index also jumped 5.61%.

The announcement by Iran and Israel to halt mutual attacks contributed to stabilizing oil prices. Seo Sangyoung, a researcher at Mirae Asset Securities, commented, “As the surge in oil prices subsided, a wave of bargain hunting focused on resolving uncertainty entered the market, further expanding gains led by the semiconductor sector.”

As of 10:08 a.m., Samsung Electronics was trading at 3,030,000 won, up 2.54% from the previous trading day, regaining the 3 million-won mark. SK hynix climbed 5.81% to 2,023,000 won, recovering the 2 million-won level. Other semiconductor-related stocks such as SK Square (up 4.38%), Samsung Electro-Mechanics (up 5.53%), and Hanmi Semiconductor (up 2.96%) were also on the rise. In contrast, stocks that had surged on the back of Nvidia CEO Jensen Huang’s visit to Korea, such as Naver (down 11.65%) and LG Electronics (down 13.81%), plummeted.

Foreign investors have been net sellers of KOSPI stocks for 22 consecutive trading days, offloading more than 500 billion won, marking the longest selling streak since March 2020 during the COVID-19 pandemic. Meanwhile, individual investors have been net buyers of more than 500 billion won, helping to support the index.

Solid Fundamentals: Now Is Not the Time to Sell... Buy the Dip if It Falls Further

Experts believe that while volatility in the domestic stock market may remain high for the time being, now is not the time to sell stocks. In fact, many argue that if the index falls to the low 7,000s, it is necessary to actively pursue bottom-fishing.

According to Kiwoom Securities, following the previous eight instances when circuit breakers were triggered on the KOSPI, the average returns were 4.5% after five days, 6.8% after 20 days, and 31.8% after 60 days, with the stock market rising in most cases. Han Ji-young, a researcher at Kiwoom Securities, explained, “This correction was not driven by a fundamental deterioration, such as a peak-out in semiconductor earnings or an imminent major external shock, but rather by excessive concentration in leading stocks and increased valuation pressure. Given the pattern of rebounds after circuit breakers are triggered, it seems appropriate to increase stock holdings if the KOSPI falls below 7,400 points.”

KB Securities also indicated that if the KOSPI drops about 15–20% from its peak, this could be the bottom of the current correction and an opportunity to buy. Lee Euntaek, a researcher at KB Securities, analyzed, “Considering the historical maximum drawdown (MDD) patterns from previous peaks, the KOSPI can rebound after a correction of about 15–20%. This translates to a range of 7,040 to 7,480 points for the KOSPI index.”

For investors looking to benefit from a market rebound, most experts recommend focusing on leading stocks in the semiconductor and robotics sectors, as well as industries related to artificial intelligence (AI).

Jo Ain, a researcher at Samsung Securities, diagnosed, “The recent correction in our stock market was not due to a deterioration in fundamentals, but rather a heightened sense of fatigue from the sustained rally, making the market more sensitive to negative news and increasing profit-taking in semiconductors. Earnings estimates for domestic companies are still on an upward trend, and the recent decline has made Korean stocks even more attractive in terms of valuation.”

Jo added, “This week, events such as the U.S. May Consumer Price Index (CPI) release and the potential listing of SpaceX could increase market volatility. Therefore, a strategy of increasing exposure to AI-related leading stocks, taking advantage of this short-term volatility, is appropriate.”

This content was produced with the assistance of AI translation services.