Foreign investors have dumped approximately $62 billion worth of South Korean stocks by late May 2026, even as the KOSPI benchmark index posted a year-to-date gain exceeding 70%. That’s the kind of contradiction that makes you do a double-take.
The selling pressure culminated in a dramatic intraday drop of more than 8%, with June 5 earning the grim nickname “Black Friday” after the index shed over 5% in a single session. On that day alone, foreign outflows hit roughly 1.24 trillion won, or about $801 million.
A record-breaking rally meets record-breaking selling
The KOSPI surged past multiple record highs, approaching or exceeding the 8,000 level. A 70%-plus gain in under six months puts South Korea’s benchmark among the best-performing major equity indices in the world this year.
The selling has been concentrated in South Korea’s crown jewels. Samsung Electronics and SK Hynix, the semiconductor giants that anchor the KOSPI’s weighting, bore the brunt of foreign liquidation.
