On May 25–29, KOSPI topped 8,000 for the first time ever, setting a record high day after day. This week, June 1–5, major events that could increase market volatility are lined up, including Nvidia's Computex keynote and Korea's June 3 local elections.
The KOSPI index continued its all-time-high run last week and settled above 8,400. The rally was led by strength in IT, spearheaded by Samsung Electronics and SK hynix. In particular, the debut of single-stock leveraged exchange-traded funds (ETFs) using Samsung Electronics and SK hynix, respectively, as the underlying asset is seen to have intensified the concentration of flows.
After the Bank of Korea's monetary policy committee kept rates on hold last week, market volatility widened. With new Bank of Korea Governor Shin Hyun-song signaling a hawkish (tightening-leaning) stance, investor sentiment weakened somewhat. However, concerns about a flood of selling eased after the National Pension Service decided to raise its target allocation to domestic stocks.
Securities firms cited U.S. economic data and global big tech events as the key variables that will set the market's direction this week. Investors are also expected to focus on the June 3 local election results.
Jensen Huang, Nvidia's chief executive officer (CEO), will deliver a keynote on the 1st at Computex 2026, Asia's largest IT and computing exhibition, in Taipei, Taiwan. Through the keynote, Huang is expected to unveil next-generation AI Semiconductor chips and AI infrastructure strategies. Comments that day on AI servers, next-generation GPUs, and memory are likely to have a meaningful impact on investor sentiment toward Korean semiconductor stocks.
According to the industry, after wrapping up major engagements in Taiwan, Huang is expected to visit Korea. Investors are wondering whether the "chimaek gathering" that Huang held last October with Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun will be held again. The chimaek meeting of these heavyweight figures at the time led to gains in related companies' share prices.
Attention is also on the results of the June 3 local elections. The securities industry is focusing less on the results themselves and more on whether the next policy direction and the stock market support policies pushed by the Lee Jae-myung administration can gain further traction.
U.S. economic indicators due this week are another variable that could affect the market. The Institute for Supply Management (ISM) manufacturing index to be released on the 1st and the May nonfarm payrolls report to be published on the 5th are seen as key gauges for assessing the Federal Reserve (Fed)'s policy path.
Junghyun Kim, an economist at Kiwoom Securities' research center, said, "In the U.S., the ISM manufacturing index and the May employment report are scheduled for release," and predicted, "The ISM manufacturing index will improve slightly, supporting demand expectations driven by the AI investment cycle."
Meanwhile, the securities industry is leaning toward the view that the semiconductor rally centered on Samsung Electronics and SK hynix could continue for the time being. Even if index swings widen in the short term, the rally in semiconductor stocks, which are delivering strong earnings, is unlikely to fizzle easily.
Jongmin Kim, a senior researcher at Samsung Securities, said, "This year in Korea's stock market, retail participation will be maximized, and the 'AI crowding' in the current phase will accelerate," adding, "While the market may intermittently attempt rotations to seek alternatives due to the technical burden on the leaders, the likelihood of a fundamental shift in market leadership is low."