Kospi Rallies 2.5% as Chip Sentiment Rebounds; Buy Sidecars Triggered on Kospi, Kosdaq

Index tops 7,400 on institutional buying

Buy sidecars triggered on both Kospi and Kosdaq

South Korea’s Kospi rose above 7,400 on July 10 as sentiment toward semiconductor stocks recovered and institutional investors stepped up buying. Optimism ahead of the planned listing of SK Hynix American depositary receipts also lifted chip shares. Even so, trading remained highly volatile, triggering temporary curbs on program buy orders in both the Kospi and Kosdaq markets.

The Kospi closed 2.52% higher at 7,475.94. It opened up 3.57% at 7,552.49 and at one point jumped 5.66% to 7,704.93, briefly topping 7,700. As the benchmark surged, a buy sidecar was triggered on the main board at 12:54 p.m. A Kospi sidecar is activated when Kospi 200 futures rise more than 5% from the reference price and hold that level for one minute, suspending program buy orders for five minutes.

About 14 minutes later, a buy sidecar was also triggered on the Kosdaq market. A Kosdaq buy sidecar is activated when Kosdaq 150 futures rise more than 6% from the reference price and the Kosdaq 150 index climbs more than 3% from the previous session’s close, with both conditions sustained for one minute. The Kosdaq index ended the day up 5.47% at 837.43.

On the main board, institutions were net buyers of 1.1319 trillion won, leading the rebound. Foreign and retail investors were net sellers of 330 billion won and 772.8 billion won, respectively, as they locked in profits. Concerns surrounding the semiconductor sector eased, helping restore appetite for risk assets across the broader market.

Meta said it plans to double its overall computing capacity next year and begin mass production of its own artificial intelligence chips, easing some concerns over a slowdown in AI infrastructure investment. Micron’s long-term investment plan to expand semiconductor production in the US also helped revive investor sentiment.

Solid investor demand ahead of the SK Hynix ADR listing also supported chip stocks. Semiconductor shares, which had plunged recently on doubts over the memory-chip cycle and the sustainability of AI spending, attracted bargain hunting that spread across the broader market.

“Meta and Micron’s investment plans eased concerns surrounding the semiconductor industry and improved investor sentiment,” Lee Kyung-min, an analyst at Daishin Securities, said. “Confirmation of solid demand for the SK Hynix ADR also supported semiconductor sentiment and added upward pressure on the stock market.”

He added that net foreign buying continued during the session, while the recovery in sentiment centered on chip stocks spread across the market. Risk appetite improved markedly, with most sectors ending higher.

Kang Kyung-ju, Hankyung.com reporter qurasoha@hankyung.com