The KOSPI has been on a daily record high rally, but foreign investors have sold more than 9 trillion won worth of shares so far this year, moving in the opposite direction of institutions.

The closing price is displayed on the dealing room board at Woori Bank headquarters in Jung-gu, Seoul, on the afternoon of the 19th as the KOSPI closes above 5,600 for the first time on record. /Courtesy of News1

According to the Korea Exchange (KRX) on the 22nd, foreigners made net sales totaling 9.156 trillion won in the KOSPI market from the start of the year through the 20th of this month. That figure exceeds double last year's annual net sales. As the index surged 38% this year and continued its high-altitude run, it is seen as a broad move to realize gains.

Foreign selling pressure focused on large-cap semiconductor stocks whose share prices jumped. They dumped 9.554 trillion won worth of Samsung Electronics, which has soared 59% this year and logged the first-ever "190,000 won Electronics," and also targeted SK hynix (5.972 trillion won) and Hyundai Motor (5.294 trillion won).

Experts interpret this selling not as a signal of a trend decline but as short-term rebalancing. Lee Kyung-min, a researcher at Daishin Securities, said, "Given that the selling is concentrated in semiconductor stocks, it's a process of reducing exposure to names that rallied a lot," adding, "It's hard to see it as a bet on a trend downturn."

In the securities industry, expectations and concerns are intersecting over the outlook. Korea Investment & Securities Co. sharply raised its KOSPI target to 7,250, citing a surge in semiconductor profits.

On the other hand, warnings are growing about valuation pressure and "AI-flation (AI+inflation)." DB Financial Investment said the acceleration of AI facility investment could trigger spikes in copper and semiconductor prices, becoming an obstacle to rate cuts, and it set the KOSPI floor forecast at 4,300 points.

The market's attention is fixed on the earnings release of Nvidia, the "AI bellwether," scheduled for the 25th. Na Jeong-hwan, a researcher at NH Investment & Securities, said, "The key is whether profitability indicators such as guidance and gross profit margin (GPM) hold up, rather than the raw earnings numbers. If some uncertainty eases, the market's focus will shift from the monetization debate to growth visibility."

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