KOSPI Drops Over 3% to Close Near 6,690 as Foreign and Institutional Investors Sell 5 Trillion Won

KOSPI Plunges as Samsung Electronics and Samsung Life Insurance Tumble
KOSDAQ Sees Net Buying by Foreign and Institutional Investors

The KOSPI index slumped on August 24, led primarily by semiconductor-related stocks. Although Samsung Electronics unveiled a shareholder return plan worth 110 trillion won, the largest in the history of Korean companies, evaluations continued to suggest it fell short of heightened market expectations, driving weakness in the KOSPI.

On this day, the KOSPI closed at 6,696.96, down 215.99 points (3.12%) from the previous session. The index opened at 6,881.07, down 31.88 points (0.46%) from the previous session, but declines accelerated as both foreign investors and institutions increased their selling. Foreign investors and institutions recorded net sales of 3.6875 trillion won and 1.2917 trillion won, respectively. In contrast, individual investors made net purchases worth 3.3192 trillion won, absorbing the available shares by themselves.

On the 24th, employees are monitoring the stock market and exchange rates at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News Agency

By industry, insurance (-7.51%), electrical and electronics (-5.13%), retail (-3.64%), manufacturing (-3.63%), finance (-2.12%), securities (-1.00%), and electricity and gas (-0.37%) recorded declines. In contrast, metals (5.52%), transportation and logistics (3.26%), chemicals (2.93%), entertainment and culture (2.84%), pharmaceuticals (2.73%), non-metallic products (2.44%), and medical precision instruments (1.93%) posted gains.

Among major stocks by market capitalization, shares of Samsung Group, as well as semiconductor and holding companies, fell sharply. Samsung Life Insurance (-13.09%), Samsung Electronics (-8.70%), Samsung Electronics (Preference Shares) (-8.55%), Samsung C&T (-7.84%), SK Inc. (-6.31%), SK Square (-4.19%), and SK hynix (-3.41%) all plunged. On the other hand, secondary battery, pharmaceutical, and defense-related stocks showed strength, with Samsung SDI rising 7.74%, LG Energy Solution up 5.39%, Hanwha Aerospace up 1.84%, and Samsung Biologics climbing 1.42%.

Jungeun Lim, a researcher at KB Securities, remarked, "The KOSPI was sluggish due to the weakness in Samsung Group shares, including Samsung Electronics, Samsung C&T, and Samsung Life Insurance," but added, "Over the medium to long term, Samsung Electronics could be re-evaluated as a long-term compounding investment asset, as profit growth and expanded shareholder returns intersect, rather than as a cyclical stock."

The KOSDAQ index finished trading at 813.33, up 11.39 points (1.42%) from the previous session. The index started at 804.27, up 2.33 points (0.29%) and continued to widen its gains. Foreign and institutional investors made net purchases of 241.7 billion won and 24.9 billion won, respectively, while individual investors alone sold a net 260.4 billion won.

Among the top KOSDAQ stocks by market capitalization, secondary battery stocks stood out for their sharp rallies, while chemicals, steel, and consumer goods sectors also remained robust. EcoPro BM (10.80%), EcoPro (7.59%), Simmtech (5.52%), Pharmaresearch (3.87%), Silicon Two (3.78%), LIG ChemBio (2.90%), PSK (2.54%), and Peptron (2.41%) all recorded significant gains. Meanwhile, EO Technics (-4.08%), Robotis (-2.56%), HPSP (-2.12%), Rainbow Robotics (-2.09%), HLB (-2.07%), LIG NEX1 (-1.67%), Jusung Engineering (-1.54%), and Wonik IPS (-1.39%) ended the session lower.

Researcher Lim explained, "Samsung SDI was strong on expectations that proceeds from the recently announced Samsung Display stake sale on August 21 would be used to expand battery production capacity in North America," and added, "Hanmi Pharmaceutical hit the upper price limit after entering a licensing agreement to transfer obesity and metabolic disease candidate drugs to Genentech in the United States for about 3.2 trillion won."

He continued, "This week is packed with major events related to artificial intelligence (AI) and interest rates, including the U.S. July Personal Consumption Expenditures (PCE) data release, inflation indicators, a keynote address at the Jackson Hole meeting by Federal Reserve Chair Kevin Warsh, Nvidia's earnings, and the Bank of Korea's Monetary Policy Board rate decision," adding, "It's necessary to pay close attention to the potential for increased stock market volatility."

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