KOSPI Closes After Recovering 4,000 Mark... -2.85% [fn Closing Market Summary]

[Financial News] Due to concerns over an 'Artificial Intelligence (AI) bubble' originating from the United States, the KOSPI plunged more than 6% during the day but rebounded in the afternoon to close above the 4,000 mark. While foreign investors net sold approximately 2.4 trillion won, individual investors bought a similar amount, providing support to the index.
According to the Korea Exchange (KRX) on the 5th, the KOSPI closed at 4,004.42, down 117.32 points (-2.85%) from the previous day. The KOSPI opened down 1.61% and dropped to as low as 3,867.81 in the morning, but later recovered to finish above 4,000.
Foreign investors led the decline in the KOSPI. After net selling 2.2671 trillion won in the main market the previous day, they increased their net sales to 2.4019 trillion won today. Institutions also net sold 98.5 billion won, but individuals net bought 2.562 trillion won, helping to support the index.
By sector, only two—insurance (up 1.49%) and telecommunications (up 0.83%)—showed gains, while most others, including machinery/equipment (-5.56%), transportation equipment/parts (-4.96%), and construction (-3.72%), declined.
Among the top 10 stocks by market capitalization, all declined except for Samsung Biologics, which was temporarily suspended from trading. Major semiconductor stocks such as Samsung Electronics (-4.10%) and SK hynix (-1.19%) fell, as did HD Hyundai Heavy Industries (-6.88%), Doosan Enerbility (-6.59%), Hanwha Aerospace (-5.94%), and Hyundai Motor (-2.72%).
Samsung Electronics dropped as low as 96,700 won (-7.20%) during the session, briefly losing the '100,000 won' mark, but pared its losses to close at 100,600 won.
The KOSDAQ closed at 901.89, down 24.68 points (-2.66%) from the previous day. Individuals and institutions net bought 563.2 billion won and 42.4 billion won, respectively, while foreigners net sold 596.7 billion won.
Meanwhile, due to the sharp declines in the KOSPI and KOSDAQ during the morning session, a program sell sidecar was triggered. The KRX activated a sidecar for five minutes at around 9:46 a.m. due to volatility in the KOSPI 200 Index Futures, and about 40 minutes later, at 10:26 a.m., triggered a sidecar for the KOSDAQ as the KOSDAQ 150 Futures plunged 6.23% from the previous day.
Securities analysts attributed the decline to concerns over an AI stock bubble and the prolonged United States government shutdown. However, they noted that while short-term market volatility may increase, it is unlikely to signal a medium- to long-term correction.
Joain, a researcher at SAMSUNG SECURITIES CO., LTD., explained, "AI-related technology stocks have recently driven the market rally, but investors are increasingly concerned about when these companies will be able to monetize their massive AI investments. The United States government shutdown, which reached its 35th day as of yesterday and set a new record for duration, has also dampened investor sentiment."
She added, "Although short-term market volatility may increase, we do not believe the market is entering a medium- to long-term correction phase. While the United States government shutdown is dragging on, it is a solvable issue, and the earnings outlook for Korean companies remains positive."

koreanbae@fnnews.com Bae Han-geul Reporter