[2026.06/01~06/05] Korea Stock Market Weekly Review | KOSPI -3.83% as 'Black Friday' Foreign Selloff Crashes Record High

This week (June 1–5) the Korean stock market swung violently from euphoria to fear in just five trading sessions. Early in the week the KOSPI set a fresh all-time high and probed the 8,900 level, only to collapse to the 8,100 zone by Friday as foreign investors dumped roughly 7 trillion won worth of stocks in a brutal 'Black Friday' selloff. Here is the full week, organized around the data.

📊 This Week at a Glance

Index	Weekly Open	Weekly Close	Weekly High	Weekly Low	Weekly Change	Weekly Volume
KOSPI	8,485.67	8,160.59	8,933.62	8,038.10	-3.83%	215,299.8만
KOSDAQ	1,072.77	1,002.44	1,082.75	992.80	-6.56%	294,929.3만

The KOSPI ended the week down -3.83% and the KOSDAQ down -6.56%, closing in tandem to the downside. Notably, the KOSPI's swing between its weekly high (8,933.62) and low (8,038.10) reached roughly 11%, a true roller-coaster week, while the KOSDAQ briefly broke below the psychologically important 1,000 line at its weekly low of 992.80. The USD/KRW exchange rate spiked to 1,558.84 won by week's end, with won weakness encouraging further foreign outflows.

📅 Daily Performance

Date	KOSPI Close	KOSPI Change	KOSDAQ Close	KOSDAQ Change
06/01 (Mon)	8,788.38	+3.68%	1,050.03	-2.30%
06/02 (Tue)	8,801.49	+0.15%	1,026.03	-2.29%
06/04 (Thu)	8,639.41	-1.84%	1,049.73	+2.31%
06/05 (Fri)	8,160.59	-5.54%	1,002.44	-4.50%

* No separate trading data was recorded for June 3. Early in the week, the contrast between the KOSPI's record-high rally and the KOSDAQ's underperformance was stark, before both indices plunged together on June 5 to close out the week.

📈 KOSPI Weekly Analysis

The KOSPI surged +3.68% on Monday, June 1, to a record close of 8,788.38, powered by heavy institutional buying and expectations surrounding NVIDIA CEO Jensen Huang's anticipated visit to Korea. Intraday it spiked as high as 8,933.62, even raising hopes of a push past the 9,000 mark. After a flat session on June 2 (+0.15%), the index pulled back -1.84% on June 4 as foreigners turned net sellers.

Then, on June 5, foreign investors unloaded roughly 7 trillion won in net selling, driving the KOSPI down -5.54% (8,160.59) in a 'Black Friday' plunge. For the week, the index fell from an open of 8,485.67 to a close of 8,160.59, a drop of -3.83%. Analysts pointed to the 25-day disparity index, which had at one point exceeded 120% — the most overheated level in the past year — as the trigger for the sharp correction.

📉 KOSDAQ Weekly Analysis

The KOSDAQ was left out of the KOSPI's record-high rally and showed pronounced weakness throughout the week. It fell -2.30% on June 1 and -2.29% on June 2 in back-to-back declines, then rebounded +2.31% on June 4, only to drop -4.50% (1,002.44) on June 5 with the 1,000 line under threat.

For the week, the KOSDAQ slid from an open of 1,072.77 to a close of 1,002.44, a -6.56% decline — a steeper drop than the KOSPI (-3.83%). Its weekly low of 992.80 marked a temporary break below the psychologically key 1,000 level. Sharp declines in AI and semiconductor equipment names (Jusung Engineering, Exicon, SemiFive, etc.) were the core driver dragging the KOSDAQ lower.

🔥 Weekly Themes & Sectors

1. Collapse of Semiconductor & AI Leverage Products (Down)

The week's biggest losers were dominated by single-stock leveraged ETN/ETF products tied to SK Hynix. Leveraged products from KIWOOM, Mirae Asset, KODEX, RISE and TIGER all posted losses in the -20% range, while inverse 2X semiconductor ETNs conversely topped the gainers list. On the KOSDAQ, semiconductor and telecom-equipment names such as Jusung Engineering (around -16%), SemiFive, Exicon and KMW plunged, as 'AI bubble' caution slammed the market's leadership stocks.

2. Rotation into Banks & Defensive Plays (Up)

The week's top sectors were Banks (+3.94%), Tobacco (+1.99%), Hotels & Leisure (+1.71%), Other Finance (+1.06%) and Multi-Utilities (+0.89%) — defensive, high-dividend areas. A classic risk-off rotation into safe-haven value stocks emerged amid the growth-stock selloff.

3. Surging FX (Won Weakness) (Up)

The USD/KRW rate broke above the 1,540 level intraday on June 5 amid the heavy foreign equity selling, then climbed to 1,558.84 won by the weekend. Won weakness fueled concerns of a vicious cycle of further foreign outflows.

4. Rotational Trading in Individual Themes & Small-Caps (Up)

Even amid the index plunge, select catalyst-driven names showed differentiated strength — Daewon Pharmaceutical hit the upper limit, while KOSDAQ names Alt, Pintel, Hankuk Chem and iRobotics also locked limit-up. Short-term rotational money funneled into small- and mid-cap theme stocks despite broad risk aversion.

Top 6 Strongest Sectors of the Week

Rank	Sector	Weekly Change
1	Banks	+3.94%
2	Tobacco	+1.99%
3	Hotels, Restaurants & Leisure	+1.71%
4	Other Finance	+1.06%
5	Multi-Utilities	+0.89%
6	Specialty Retail	+0.65%

* Note: this week's sector dataset returned identical figures for KOSPI and KOSDAQ, suggesting a possible data-collection limitation, so a single combined sector table is presented.

Notable Weekly Movers

[KOSPI Gainers] Daewon Pharmaceutical (limit-up, 11,240 won), InBioGen (7,590 won) and Iljeong Industrial (1,994 won), alongside inverse 2X semiconductor ETNs, topped the gainers list.
[KOSPI Losers] SK Hynix single-stock leveraged products (KODEX 23,160 won, Mirae Asset 22,550 won, 1Q 22,165 won, etc.) plunged by around 5,000 won each, and SK Networks (10,900 won) was also weak.
[KOSDAQ Gainers] Alt (limit-up, 1,878 won), Pintel (limit-up, 1,406 won), Hankuk Chem (limit-up, 14,670 won) and iRobotics (limit-up, 3,285 won) all locked the upper limit.
[KOSDAQ Losers] Semiconductor and telecom-equipment names such as Jusung Engineering (210,000 won, -40,500 won), SemiFive (31,950 won), Exicon (25,250 won) and KMW (32,800 won) tumbled.

💰 Foreign & Institutional Weekly Flow

Early in the week (June 1), the KOSPI's record high was led by aggressive institutional net buying. Later, however, on June 5, foreign investors poured out roughly 7 trillion won in net selling, triggering the 'Black Friday' rout. The foreign selloff, coupled with the surge in USD/KRW (a break above the 1,540 level), accelerated capital outflows. Detailed aggregate weekly flow data was not compiled, but the defining feature of the week was a rapid deterioration in supply-demand leadership — from 'early-week institutional buying' to 'weekend foreign dumping.'

🌍 Global Impact

Weakness in global markets formed the backdrop for the domestic plunge. All three major US indices fell, with tech-led selling especially pronounced, which fed directly into the dumping of Korean semiconductor and AI stocks.

Index	Close	Change
NASDAQ	25,709.43	-4.18%
S&P 500	7,383.74	-2.64%
Dow Jones	50,866.78	-1.35%

The US jobs data due June 5 (Non-Farm Payrolls forecast 85K, unemployment rate 4.3%), Middle East risk and Broadcom's earnings were all cited as volatility factors. The USD/KRW rate climbed to 1,558.84 won, highlighting a vicious cycle in which won weakness encouraged foreign outflows. (Crude oil and Bitcoin data were excluded from the analysis due to collection errors.)

📋 This Week's Economic Indicators & Earnings

Major Global Economic Indicators (High Impact)

Date (KST)	Country	Event	Forecast	Previous	Actual
06/01	USD	ISM Manufacturing PMI	53.3	52.7	TBD
06/02	GBP	BOE Gov Bailey Speaks	-	-	TBD
06/03	AUD	GDP q/q	0.5%	0.8%	TBD
06/03	JPY	BOJ Gov Ueda Speaks	-	-	TBD
06/03	USD	ADP Non-Farm Employment Change	118K	109K	TBD
06/03	USD	ISM Services PMI	53.7	53.6	TBD
06/05	CAD	Employment Change	10.6K	-17.7K	TBD
06/05	CAD	Unemployment Rate	6.9%	6.9%	TBD
06/05	USD	Average Hourly Earnings m/m	0.3%	0.2%	TBD
06/05	USD	Non-Farm Employment Change	85K	115K	TBD
06/05	USD	Unemployment Rate	4.3%	4.3%	TBD

* Actual released figures require separate verification. This was a week heavily loaded with key employment and activity data — US ISM Manufacturing and Services PMIs, ADP employment, and the weekend Non-Farm Payrolls report.

Major Domestic Disclosures & Earnings

No major DART disclosures were compiled this week. On the earnings front, market attention focused on Broadcom's results as a barometer of the global AI investment boom, with the durability of AI-chip demand acting as the key variable for semiconductor-stock volatility.

🔮 Next Week Outlook & Key Risks

Following the June 6 (Sat) Memorial Day holiday, next week hinges on digesting the fallout from US employment data and inflation indicators (CPI). The key variables will be whether the NASDAQ extends its correction, whether USD/KRW settles in or pushes beyond the 1,550 zone, and the timing of any return of foreign buying. With much of the 25-day disparity overheating now unwound, the market sits at an inflection point where the potential for a technical rebound coexists with further downside risk.

Key Risk Factors

• A vicious cycle of further outflows if foreign selling persists and USD/KRW entrenches above 1,550
• Joint weakness in semiconductor and AI stocks should the NASDAQ and other global tech extend their correction
• A sharp chill in small-cap sentiment if the KOSDAQ breaks below 1,000
• Profit-taking supply following the steep prior run-up
• Fed monetary-policy uncertainty depending on US employment and inflation results

⚠️ Investment Disclaimer

Disclaimer: This post is for informational purposes only and does not constitute investment advice. All investment decisions are the sole responsibility of the investor. Past performance does not guarantee future results. Actual released figures for some economic indicators require separate verification. Always confirm information independently and observe the principle of diversification before making investment decisions.

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