South Korea's KOSPI Surges to 9,000, Drawing U.S. Stock Investors Back Amid April-May $1.4B Outflows

According to FinancialNews, South Korea's KOSPI index surged from 4,200 at the start of 2026 to nearly 9,000 by mid-year, triggering a return of individual investors who had focused exclusively on U.S. stocks. The rally, fueled by gains in semiconductor stocks like Samsung Electronics and SK Hynix, sparked FOMO-driven flows. In April and May alone, Korean retail investors sold $469 million and $940 million worth of U.S. stocks respectively, redirecting capital to domestic equities.

The domestic market's extreme volatility, however, has proved taxing. Since the start of 2026, the KOSPI triggered circuit breakers 8 times and sidecar halts 31 times. By June, sentiment shifted as investors returned to U.S. stocks, with net inflows of $234 million, signaling potential reversion as domestic market swings intensify.