On May 25–29, the KOSPI topped 8,000 for the first time ever and kept setting a record high day after day. This week (June 1–5), Nvidia's Computex keynote and Korea's June 3 local elections are among the major events that could increase market volatility.
The KOSPI index kept its record-setting 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, with the launch of single-stock leveraged exchange-traded funds (ETFs) using Samsung Electronics and SK hynix respectively as the underlying asset, some noted that the concentration of flows has intensified.
After the Bank of Korea's monetary policy committee left rates unchanged last week, market volatility widened. With new Bank of Korea Governor Shin Hyun-song taking a hawkish (preferring monetary tightening) stance, investor sentiment was somewhat dampened. However, the decision by the National Pension Service to raise its target allocation to domestic stocks reduced concerns about a flood of selling.
Securities firms cited U.S. economic data and global big tech events as the key variables that will decide the market's direction this week. Investor attention will also focus on the June 3 local election results.
Nvidia CEO Jensen Huang will deliver a keynote on the 1st at Computex 2026, Asia's largest IT and computing trade show, 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 expected to significantly affect investor sentiment toward Korean semiconductor stocks.
According to the industry, after wrapping up key events in Taiwan, Huang is expected to visit Korea. Investors are wondering whether last October's "chimaek meeting" with Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun will happen again. The chimaek meeting of these heavyweight figures at the time led to gains in related companies' share prices.
Attention is also fixed on the June 3 local election results. Securities firms are focusing less on the results themselves and more on whether the next policy direction and the stock market support policies pursued by the Lee Jae-myung administration will gain more traction.
U.S. economic indicators due this week are also variables 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 due on the 5th are considered key gauges for assessing the Federal Reserve's monetary policy path.
Junghyun Kim, economist at Kiwoom Securities' research center, said, "In the United States, the ISM manufacturing index and the May jobs report are scheduled for release," adding, "The ISM manufacturing index will improve slightly and support demand expectations tied to the AI investment cycle."
Meanwhile, in the securities industry, there is growing weight on the possibility that the semiconductor rally led by Samsung Electronics and SK hynix will continue for the time being. Even if index swings widen in the short term, the rally in semiconductor stocks, which continue to post strong earnings, is unlikely to break easily, according to this view.
Kim Jong-min, senior researcher at Samsung Securities, said, "This year in Korea's stock market, public participation will be maximized, and the 'AI concentration' that leaves few alternatives in the current phase will accelerate further," adding, "While sporadic attempts by the market to seek alternatives (rotational trades) may emerge due to technical burdens on leading stocks, the likelihood of a fundamental shift in market leadership is low."