The KOSPI has broken through the 7,400 level for the first time ever, ushering in the "7,000-point era," but retail investors are facing increasingly complex dilemmas. Some investors are suffering from belated FOMO (fear of missing out) as they watch shares of Samsung Electronics (005930.KS) and SK hynix (000660.KS) surge, while others who have already secured substantial gains are growing anxious over whether to sell now or hold on longer.
"I Didn't Buy Even at 800,000 Won"... Retail Investors Shaken by hynix FOMO
As the semiconductor rally pushes the market higher, sentiment is split between "Should I jump in now?" and "Isn't a correction coming soon?"
Retail investor communities have recently been flooded with posts agonizing over "Samjeon-nix" — a portmanteau of Samsung Electronics and SK hynix.
"When SK hynix crossed 1.6 million won, FOMO kicked in," said one office worker in his 30s. "I kept deliberating when it was in the 800,000 won range but never bought. I feel deflated."
Conversely, investors who have already boarded the semiconductor train are equally uneasy. One office worker who posted gains of more than 30 percent on large-cap chip stocks confessed, "It rose so fast that I keep worrying about when it will crash."
The mood in online communities is starkly divided. While some posts declare, "I already sold Samsung Electronics at 260,000 won," others say, "I'm holding until year-end" or "I'm even buying leveraged ETFs."
On the other hand, quite a few investors are taking profits, saying, "The KOSPI looks like a casino" or "A major correction seems imminent."
Foreigners Dumped, Retail Investors Pushed Back
Last week, the domestic stock market surged explosively on the back of a powerful semiconductor rally.
The KOSPI broke through the 7,000 level for the first time in history and at one point during intraday trading soared to 7,500. Samsung Electronics and SK hynix jumped 14.41 percent and 10.64 percent, respectively, in a single day, both setting new record highs.
Foreign investor flows fluctuated sharply. Foreigners net-purchased more than 6 trillion won over two days on the 4th and 6th but reversed course and net-sold 12.3 trillion won on the 7th and 8th. The net selling on the 7th alone exceeded 7 trillion won, setting a new all-time record.
Even so, the KOSPI did not collapse. The index plunged more than 2 percent in early trading on the 8th, but retail investors stepped in with bargain hunting, and the index ultimately closed higher. The KOSPI set new closing record highs for four consecutive trading days last week.
Investor sentiment indicators were also bullish. The MSCI Korea ETF rose 7.61 percent over the week, and the Philadelphia Semiconductor Index gained 5.51 percent.
"Early Stage of Memory Re-Rating"... But Caution on Chasing Rally
Securities analysts view the current semiconductor rally not as a mere thematic trade but as a trend grounded in earnings improvements.
"The current rally is based on upward earnings revisions," said Na Jeong-hwan, an analyst at NH Investment & Securities, adding that strategies centered on existing leading sectors such as semiconductors and power equipment remain valid.
Han Dong-hee, an analyst at SK Securities, also said, "The memory re-rating is still only in its early stages." He added, "Even after the sharp price gains, the 12-month forward price-to-earnings ratios of Samsung Electronics and SK hynix stand at 6x and 5.2x, respectively, still offering undervalued appeal."
However, some caution against unconditional chase buying.
"Looking at recent flow patterns, the market has repeatedly surged at the beginning of the month, gone through a short-term box-range correction, and then leveled up again," said Lee Kyung-min, an analyst at Daishin Securities. "Rather than impatiently chasing after missing the early-month surge, a split-buying strategy that takes advantage of short-term fluctuations is effective."
The possibility of a general strike by Samsung Electronics' labor union, scheduled for the 21st, is also cited as a variable. Market participants are concerned that if the strike materializes, volatility in Samsung Electronics — the key pillar of the recent semiconductor rally — could increase.
