Daily Pulse — June 11, 2026

KOSPI 7,424.09 (−3.97%) · KOSDAQ −1.0% · KRW/USD ~1,531

The Tape

Korean equities extended their post-record correction on Wednesday, with the KOSPI declining 3.97% to close at 7,424.09 — the fourth losing session in the past five trading days. The index has now retraced more than 15% from its all-time high of 8,933 reached just over a week ago.

What Drove It

Three forces are colliding simultaneously. First, continued foreign institutional selling — overseas investors have now net sold over KRW 5 trillion (~$3.3B) in KOSPI-listed shares since the June 2 peak. Second, retail margin call mechanics: leveraged domestic retail positions accumulated during the January–May rally are being unwound. Third, the macro backdrop: US May CPI data is being pre-traded as a hawkish surprise, pushing 10-year UST yields toward levels that pressure EM equity multiples.

Semis: The Epicenter

Samsung Electronics and SK Hynix — together representing roughly 40% of KOSPI market cap — are down 20–25% from their early-June highs. This is a valuation reset, not a fundamental repricing. HBM4 demand from hyperscalers remains robust and TSMC's May revenue confirmed 30% YoY growth.

Levels to Watch

The 7,400 level represents support at the 50-day moving average. A decisive close below opens a move toward 7,000–7,200, where KOSPI forward P/E compresses to ~6.5x. Resistance on any bounce sits at 7,750–7,800.

One Signal Worth Watching

Citi's warning of "asymmetric downside risk due to elevated bullish positioning" came after a 15% drawdown — suggesting institutional sentiment is still catching down to price action. When the last bull capitulates, the floor tends not to be far away.

Daily Pulse is published each trading day by KoreaAlpha.com. Not investment advice.