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Foreign investors, who turned net buyers for the first time in about a month, hit the buy button mainly on Samsung Electronics and SK hynix. The shift is attributed to a recovery in investor sentiment after news emerged that a war-ending memorandum of understanding (MOU) between the United States and Iran is imminent.
According to the Korea Exchange, foreign investors made net purchases of 2.1351 trillion won on the Kospi market on the 12th. It marked the first foreign net buying on the Kospi in 25 trading sessions, since the 6th of last month. Institutions also bought a net 2.3207 trillion won, sending the Kospi up 359.67 points (4.63%) from the previous close to end at 8,123.62.
The stock foreign investors bought most on the day was SK hynix, totaling 1.2882 trillion won. Foreigners had net-bought SK hynix the previous day (the 11th) for the first time in 24 trading sessions since the 6th of last month. As a result, foreign ownership of SK hynix, which stood at 53.23% on the 6th of last month, fell to 51.05% as of the 10th, the lowest level this year.
After SK hynix, foreigners net-bought 882.9 billion won worth of Samsung Electronics. Foreigners had sold Samsung Electronics for 10 consecutive trading sessions starting the 27th of last month, then turned net buyers the previous day and bought for a second straight day. Foreign ownership of Samsung Electronics also stood at 47.58% on the 11th, the lowest level this year.
The biggest draw bringing foreigners back to the Kospi is interpreted as a recovery in risk appetite following easing geopolitical uncertainty in the Middle East. U.S. President Donald Trump said on the 11th (local time), "We have just reached an excellent agreement on the war with Iran, and all that remains now is the final paperwork." He added, "We will receive the documents within the next few days and hold a signing ceremony, which will probably be held in Europe."
In a report, Samsung Securities forecast, "If a U.S.-Iran agreement is reached, global equity markets will maintain their upward trend, with gains expected in the European market, which has relatively underperformed." It added, "A slowdown in expected inflation due to falling oil prices will lead to a downward stabilization of major countries' government bond yields and a shift toward a weaker dollar."
"Semiconductor Super Cycle Is Just Beginning"
The outlook for the Kospi market remains optimistic. Nomura, the global investment bank that raised its Kospi target to 10,000–11,000 points at the end of last month, diagnosed that the semiconductor super cycle is still in its early stages. Jeong Chang-won, co-head of Nomura Asia Research, said this at the "2026 Korea Economy and Stock Market Media Briefing" held at the Seoul Finance Center in Jung-gu, Seoul, on the 12th, noting, "What matters is valuation."
Jeong stressed, "This year, monthly memory sales have shown a vertical rise," adding, "This is a pattern never seen before in the past." He emphasized, "Considering this, the current semiconductor super cycle is only just beginning." Jeong also expressed optimism, saying, "Memory demand driven by AI is expected to grow 10,000 to 20,000 times over five years," and "We are heading into a completely new world we have never heard of."
Nomura Securities raised its Kospi target to 10,000–11,000 on the 20th of last month. It set target prices for Samsung Electronics and SK hynix at 590,000 won and 4 million won, respectively.
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