Global Markets Rally, but KOSPI Pauses After Hitting 7,500

KOSPI Hits 7,500 Intraday Before Reversing Lower
Profit-Taking Emerges After Short-Term Surge
Market Outlook Remains Positive in the Mid- to Long-Term

On the 7th, the KOSPI broke through the intraday record high of 7,500 points but reversed into a decline as profit-taking sell-offs appeared. On this day, the status of the domestic stock market is displayed on the electronic board of the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. 2026.5.7 Photo by Kang Jinhyung

The KOSPI broke through an intraday all-time high of 7,500 points, but reversed to decline as profit-taking selling emerged. However, with global stock markets remaining strong, the continued boom in memory semiconductors, and ongoing net buying by foreign investors, the KOSPI is expected to continue its attempt to reach 8,000 points.

On May 7, the KOSPI opened at 7,499.07, up 1.55% from the previous trading day, and even reached a record high of 7,531.88 in the early session. However, as profit-taking emerged, the index was trading at 7,291.90 as of 10:08 a.m., down 1.25%. The KOSDAQ also opened at 1,210.83, up 0.05% from the previous session, but was trading at 1,197.10, down 1.08%. The won-dollar exchange rate opened at 1,448.6 won, down 6.5 won, and remained at a similar level.

While the New York stock market showed strength amid rising expectations for the end of hostilities between the United States and Iran, the Korean stock market failed to sustain its upward momentum. Overnight in New York, the S&P 500 Index and the Nasdaq Composite rose by 1.46% and 2.02%, respectively, both reaching new all-time highs. The Philadelphia Semiconductor Index also jumped 4.48%, continuing its record-breaking streak. Stock markets rallied following reports that the United States and Iran are discussing the signing of a memorandum of understanding (MOU) to end the war. U.S. President Donald Trump said in a local media interview that he believes "the chances of reaching an agreement are very high" when asked whether a deal with Iran is imminent, and noted, "There is a possibility that an agreement with Iran could be reached before my scheduled visit to China next week."

Foreign investors led the charge past 7,000 points by net buying approximately 6 trillion won worth of KOSPI stocks over just two trading days, May 4 and 6. Foreign investors mainly purchased large-cap semiconductor stocks such as Samsung Electronics and SK hynix. On the previous day alone, they made a net purchase of about 5 trillion won in Samsung Electronics and over 2 trillion won in SK hynix. The foreign ownership stake in Samsung Electronics, which had dropped to the low 48% range early last month, also rose to 49.6% as of the previous day.

However, on this day, foreign investors turned to net selling by nearly 3 trillion won in the KOSPI, engaging in profit-taking. Due to foreign selling, leading semiconductor stocks that had previously driven the KOSPI upward—such as Samsung Electronics (-1.32%), SK hynix (-1.37%), and SK Square (-3.02%)—mostly declined.

Although profit-taking sales are emerging following the recent rapid surge in the stock market, the prevailing outlook is that the market will remain strong in the mid- to long-term. Han Ji-young, a researcher at Kiwoom Securities, emphasized, "We are currently in a phase where the sustainability of foreign investors' 'Buy Korea' trend coincides with improved KOSPI earnings momentum," adding, "There is additional room for the KOSPI to rise further, led by major stocks such as semiconductors."

This content was produced with the assistance of AI translation services.