Individual Investors Gain Influence in Korean Stock Market: “Increase Investments in Samsung Electronics and SK hynix” [Weekend Money]

Shift in Stock Market Supply and Demand from Foreign Investors to Individuals
Growing Influence of Passive Funds Such as ETFs Makes Samsung Electronics and SK hynix Favorable Investment Choices

The Kospi index surpassed the 8,000 mark during trading on May 15, and Samsung Electronics’ stock price was displayed on the electronic board in the dealing room of Hana Bank in Jung-gu, Seoul. 2026.5.15 Photo by Kang Jinhyung

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There is an analysis suggesting that the main driving force behind supply and demand in the Korean stock market is rapidly shifting from foreign investors to individual investors. As personal investment capital is flowing into the stock market in passive forms such as Exchange Traded Funds (ETFs), Samsung Electronics and SK hynix—the two major semiconductor stocks—are expected to benefit the most and are considered more favorable for investment in the short term.

On the 23rd, Samsung Securities stated that the structure of supply and demand in the domestic stock market, which used to be centered on foreign investors, is now clearly shifting toward individual investors. According to Samsung Securities, in the past, the direction of the Kospi index tended to be determined by the inflow or outflow of foreign capital. Recently, however, domestic stock markets have seen a growing influx of individual capital focused on ETFs, leading to a strengthening influence of passive and regular investment funds. Even during periods of intensified foreign selling, the inflow of household funds from individuals is said to play a role in mitigating market volatility.

Samsung Securities analyzed that the inflow of individual capital into ETFs is increasing supply and demand from financial investment and driving the index upward. The larger the ETF market becomes, the more financial investment buying occurs because when individual investors purchase ETFs through securities companies, liquidity providers (LPs) buy the constituent stocks of the index in proportion to their weights for hedging purposes. This buying activity is then recorded as financial investment demand. The expansion of the ETF market leads to buying pressure on large-cap stocks at the top of the market capitalization ranking, thereby amplifying the index’s upward movement.

Accordingly, Samsung Securities emphasized that attention should be paid to Samsung Electronics and SK hynix, the two leading large-cap semiconductor stocks that are positioned to directly benefit from the influx of passive funds. Juhui Maeng, Senior Researcher at Samsung Securities, explained, “These two stocks have an overwhelmingly high weighting in major domestic ETFs and are also highly favored by long-term investors. In fact, a significant number of major ETFs listed in Korea are structured with these two stocks as their core components, so when ETF funds increase, buying flows into these stocks first.”

Maeng further added, “Due to these structural factors, the concentration of supply and demand in these two stocks is likely to persist for the time being. The two major semiconductor stocks are also likely to secure a relatively stable supply and demand base even during periods of heightened volatility.”

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