On June 6, 2026, South Korea's Herald Economy reported that 'semiconductor stocks, which had led the KOSPI to break through 8000, are starting to show signs of decline, and there are indications of a change in the structure of the South Korean stock market.'

Meanwhile, large-scale selling by foreign investors is concentrating on large-cap semiconductor stocks such as Samsung Electronics and SK Hynix, and there is a possibility that a 'sector rotation' will occur, where funds shift to industries that have not received much attention until now.

According to the financial investment industry, funds had been concentrated mainly in semiconductor and artificial intelligence (AI)-related stocks in the recent South Korean stock market, but with profit-taking selling beginning in the first week of June, the disparity in returns between industries is narrowing.

Sangsangin Investment & Securities analyzed, saying, 'The concentration of funds in very strong large-cap semiconductor and substrate-related stocks has eased due to a sharp decline caused by profit-taking.' It also pointed out that 'since the market closure on June 3 (the voting day for the unified local elections), the dispersion of funds across the entire market, particularly centered on the financial and distribution sectors, has intensified.'

In particular, semiconductor substrate stocks, secondary battery stocks, and some large-cap IT stocks, which had surged in a short period even more than large-cap semiconductor stocks, experienced significant declines. Although the overall market level declined, it is reported that 'the spread of funds has rather expanded.'

The movements of foreign funds are also supporting the possibility of sector rotation.

Shinhan Investment & Securities pointed out in a recent report that 'industries with good profit momentum are not limited to IT but are expanding to industrial goods, finance, consumer goods, telecommunications, and energy.' Among these, foreign investor fund inflows have been confirmed in the distribution, cosmetics and apparel, and energy sectors.

In particular, distribution and cosmetics-related stocks are expected to benefit from increased inbound demand and the 'wealth effect' due to rising stock prices. On the other hand, for energy-related stocks, geopolitical risks surrounding the Middle East situation and increased summer demand were cited as investment attractions. In fact, it has been confirmed that the foreign ownership ratio in these industries has been steadily rising over the past month.

In response to this article, South Korean internet users commented: 'It will probably still be semiconductors for the next few years,' 'When articles like this come out, funds seem to concentrate on semiconductors again,' 'If semiconductors, which are leading the market, fall, other stocks will eventually fall too,' 'The dollars earned by Samsung and Hynix from semiconductor exports were taken by foreign investors,' and 'If foreigners take profits by utilizing exchange rate gains, all that will be left are citizens burdened with debt.'

(Translation/Editing by Asae)