South Korea's KOSPI slides on foreign sell‑off as KOSDAQ rebounds on policy optimism

On June 29 the KOSPI opened down more than 1% as foreign investors sold a net 1.23 trillion won, dragging down semiconductor giants Samsung Electronics and SK Hynix. The market’s broader volatility continued, with daily swings averaging around 4% and two circuit‑breaker interruptions recorded within the week.

At the same time the KOSDAQ index fell to an eight‑month low of 851.37, its lowest since October 2022, and its market‑capitalisation share slipped to a 27‑year trough of 6.5%. Policy expectations sparked a sharp rebound later in the session, with the index climbing over 6% to break the 900‑point level and triggering the “sidecar” program‑trade pause mechanism.

The Korean Exchange is preparing stricter delisting rules that will affect roughly 10% of KOSDAQ listed firms—about 178 companies with market caps under 200 billion won—potentially widening volatility. Government and exchange officials cite the need for reforms such as a stepped‑up listing‑maintenance system and a growth‑fund to revive investor confidence.

Overall, the Korean equity market remains in a highly turbulent phase, with foreign capital flows, semiconductor sector dynamics, and upcoming regulatory changes shaping short‑term price movements.