South Korea's benchmark KOSPI closed above the 8,800 level for the first time on a closing basis Tuesday, weathering extreme intraday swings. While related theme stocks diverged sharply amid expectations surrounding Nvidia CEO Jensen Huang's movements, buying interest in large-cap stocks revived in the afternoon, firmly supporting the index's downside.
The KOSPI ended at 8,801.49 on Dec. 2, up 13.11 points, or 0.15%, from the previous trading session. It marked the first time the index closed above 8,800. The KOSPI had touched 8,874.16 intraday the previous day but finished at 8,788.38. In contrast, the KOSDAQ index closed at 1,026.03, down 24.00 points, or 2.29%, reflecting fatigue in previously leading stocks.
The KOSPI swung between heaven and hell in roller-coaster trading. Just five minutes after the open, the index broke above 8,900 on expectations of Huang's visit to Korea, but foreign selling soon poured in, sending it plunging to the 8,500 level within nine minutes of the open in extreme volatility. Some market observers said recently listed single-stock leveraged exchange-traded funds (ETFs) tied to semiconductors further amplified the intraday volatility.
Foreign investors net sold 6.5997 trillion won on the main bourse alone. It was the third-largest figure on record, following 7.0527 trillion won on Feb. 27, 2026 and 6.6986 trillion won on May 7, 2026. However, retail investors, driven by FOMO (fear of missing out) sentiment and bargain-hunting, absorbed the foreign selling with 6.3501 trillion won in net buying. Institutions also lent support with 243.2 billion won in net purchases.
By stock, performance diverged based on the "substance" of Nvidia-related benefits. Stocks that had surged the previous day on Huang's mention of cooperation and expectations of his Korea visit all plunged early in the session, but some staged dramatic afternoon rebounds. Naver (035420) closed up 3.31%, buoyed by news that it had officially announced a partnership with Nvidia in Taiwan to build a global AI factory business. LG Electronics (066570), which had hit the upper limit for two consecutive days through the previous session before being pressured by intraday profit-taking, also saw renewed buying in the afternoon and ended at 392,500 won, up 3.15%.
The semiconductor twins moved in opposite directions. Samsung Electronics (005930) defended the index, rising 3.30% to 360,500 won. SK hynix (000660) edged down 0.13%, taking a breather. Among MLCC and substrate leaders that had previously surged on attention as AI hardware beneficiaries, Samsung Electro-Mechanics (-9.58%) and LG Innotek (-18.17%) saw heavy selling on concerns over elevated prices. Meanwhile, SK Telecom (017670), which was mentioned as a physical AI partner, soared 11.59%, and Samsung Life Insurance (032830), backed by value-up momentum, surged 17.07% in a sharp rally.
"Domestic stocks showed volatile trading as profit-taking emerged amid short-term overheating concerns and accumulated upside fatigue," said Lee Kyoung-min, an analyst at Daishin Securities. "As the recent leading sectors weakened due to digestion of selling pressure from short-term overheating, sector rotation unfolded."
