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Kospi Enters Bull Market as Samsung and SK Hynix Drive Rally

Foreign institutions piled into chip stocks after strong US AI-related earnings and a media report of possible Temasek investments boosted Samsung and SK Hynix sentiment.

Overview

  • The Kospi has climbed roughly 22–23% from its July 30 low, crossing the common 20% threshold used to define a technical bull market.
  • Large gains in Samsung Electronics and SK Hynix powered the advance, with both stocks rising mid- to high-single-digit percentages during the rally reported across Asian trading.
  • A media report that state investor Temasek may make direct investments in the two chipmakers has amplified buying but remains unconfirmed by Temasek.
  • Foreign institutional investors were the main buyers during the rebound while local retail investors sold, and exchanges reported multi-session net purchases by overseas funds.
  • Regulatory tighter margin rules and curbs on single-stock leveraged ETFs have reduced the risk of forced liquidations, but heavy index concentration, more than $100 billion of year-to-date foreign outflows, and reliance on sustained AI capex keep volatility and downside risks intact.