AI Boom Reshapes South Korean Stock Market: Domestic Capital Heavily Invests in Semiconductors, Foreign Investors Cut Positions in Samsung and SK Hynix

According to reports from Korean media outlet DAUM, the Korea Exchange today released data indicating that the AI boom is reshaping South Korea's stock market. Between January 2 and October 2, 2026, capital flows in the Korean stock market exhibited a clear divergence: domestic capital focused heavily on buying core semiconductor stocks in the AI supply chain, Samsung Electronics and SK Hynix, while foreign investors drastically reduced their positions. Data shows that South Korean individual investors have cumulatively made net purchases of 43.1143 trillion Korean won in Samsung Electronics and 39.5028 trillion won in SK Hynix this year. Institutional investors have similarly targeted semiconductors, recording net purchases of 11.6193 trillion won for Samsung Electronics and 8.5265 trillion won for SK Hynix. By contrast, foreign capital cumulatively net-sold 84.5702 trillion won worth of Samsung Electronics and 82.5040 trillion won worth of SK Hynix, while also trimming stakes in companies such as Hyundai Motor and SK Square. Analysts suggest that amid US Treasury bond yields rising into the 5% range, the market is placing greater emphasis on sectors with strong profitability. Driven by AI infrastructure investment, semiconductors and IT hardware should remain core portfolio allocations.