[Edaily Reporter PARK MIN ] The KOSPI is in utter chaos. After experiencing its worst week on record last week due to “concerns over the profitability of artificial intelligence (AI) investments,” the KOSPI opened sharply lower by more than 3% early on the 19th, fueling market fears. However, bargain-hunting emerged on SamsungElectronics(005930)and SK hynix(000660)—which had seen a flood of pre-market sell-offs—allowing the index to rapidly recoup its losses and rebound sharply by more than 1%. The KOSDAQ also recovered the 800-point mark for the first time in three days, buoyed by a rally in secondary batteries and the pharmaceutical/biotech sectors. However, securities analysts advise that investors should remain wary of high volatility for the time being, as uncertainties surrounding the AI industry have not been resolved.

According to MP Doctor, the KOSPI index closed the regular session at 5,768.01, up 99.96 points (1.76%) from the previous trading day. The index, which had fallen to 5,488.41 shortly after the opening—even dropping below the 5,500 mark—rapidly erased its losses. It then climbed to a high of 5,768 in the afternoon and closed near its intraday peak.

In terms of market participants, institutions led the rebound by posting net purchases of 655.5 billion won on their own. Foreign investors, who had shown buying momentum early in the session, shifted to net selling of 114.1 billion won as they took profits following the index’s rebound. In particular, retail investors sold 1.0895 trillion won worth of shares. It appears that selling pressure was concentrated due to stop-loss orders from retail investors exhausted by extreme volatility, as well as orders aimed at avoiding forced liquidation.

SamsungElectronics, which had plummeted 6% early in the session due to concerns over AI profitability, closed the regular session at 218,000 won, up 1.16% (2,500 won) from the previous trading day, while SamsungElectronics(1P)(005935)also rose 2.21% to 170,900 won. SK hynix(000660), which had plummeted to 1.19 million won before the market opened due to the dual-listing issue involving its U.S. subsidiary Solidigm and concerns about an AI bubble, also closed higher at 1.277 million won—up 0.39% (5,000 won)—as buying interest picked up toward the end of the session.

Securities analysts believe that the “shock of the AI profitability bubble theory”—which resurfaced last weekend on the New York Stock Exchange due to concerns over CoreWeave’s credit risk and Gartner’s report warning of AI investment risks—was already factored into the index early in the trading session. In particular, given that SamsungElectronics plummeted 17.8% and SK hynix fell 24.3% last week (December 12–16), analysts predicted that the panic-selling phase had subsided as bargain-hunting emerged based on the perception that the stocks had been oversold.

In addition to the strength in major semiconductor stocks, large-cap stocks in sectors such as secondary batteries and pharmaceuticals/biotech also served as drivers of the index’s rise. SAMSUNG BIOLOGICS(207940)closed at 1,427,000 won, surging 9.94% (129,000 won), while LG Energy Solution(373220)also rose 7.20% (29,000 won) to close at 432,000 won. In addition, HyundaiMotor(005380)(4.49%), Samsung Life Insurance(032830)(2.52%), and KB Financial Group(105560)(1.69%) all posted gains.

On the same day, the KOSDAQ index also closed at 808.89, up 14.11 points (1.78%) from the previous trading day, reclaiming the 800-point level for the first time in three days. On the KOSDAQ, retail investors made net purchases of 61.2 billion won and institutional investors of 48.4 billion won, while foreign investors made net sales of 123.3 billion won. The number of stocks that rose reached 1,183, more than doubling the number of stocks that fell (471).

Among the top-market-cap stocks on the KOSDAQ, leading secondary battery stocks surged sharply. ECOPRO CO., LTD(086520)closed at 90,400 won, soaring 11.19% (9,100 won), while ECOPRO BM CO., LTD.(247540)also jumped 8.33% to 115,800 won. The leading robotics stock, Rainbow Robotics(277810), also closed at 378,000 won, surging 7.23%. Biotech stocks also rose across the board, including the market-cap leader Alteogen Inc.(196170)(up 2.14%), as well as HLB INC.(028300)(up 3.00%) and SAM CHUN DANG PHARM CO. LTD(000250)(up 2.93%).

Industry experts advise that investors should remain cautious of high volatility for the time being, as uncertainties surrounding the AI industry have not yet been resolved. They point out that it is difficult to expect a clear trend-based rebound until issues such as controversies over investment profitability, the technological catch-up by Chinese companies, and instability in international oil prices are resolved. Seo Sang-young, Executive Director at MIRAE ASSET SECURITIES, analyzed, “The key issue is not a collapse in AI demand itself, but rather a reassessment of debt-driven investment models and high valuations,” adding, “We are seeing a flow of rebound buying, particularly in tech stocks that had experienced sharp declines.”

Accordingly, the third-quarter earnings reports from major U.S. companies scheduled for this week (the 19th–23rd) are expected to serve as the first turning point for a trend reversal. Meta, Lam Research, IBM, and Texas Instruments (TI) will report earnings on the 21st, while Western Digital will report on the 22nd. In particular, Meta’s earnings report is expected to provide an opportunity to confirm whether expanded investment in AI data centers is actually leading to improved profitability.

Lee Sang-jun, an analyst at NH INVESTMENT & SECURITIES, said, “If it is confirmed that the CoreWeave incident is an issue specific to an individual company rather than the entire AI industry, a strong rebound could occur.” Han Ji-young, an analyst at KIWOOM Securities, said, “The market is expected to build downward support as it navigates key earnings events, including those of U.S. Big Tech companies, domestic power equipment firms, and defense companies,” adding, “From the perspective of the extent of the decline, it is also time to consider that the domestic stock market has undergone an excessive correction compared to other stock markets.”