[Edaily Reporter Kim Kyung-eun ] While the KOSPI has plummeted more than 12% this month, stocks that have actually posted double-digit gains are drawing attention. As tech stocks, such as semiconductors, have crashed, investor interest appears to be shifting toward sectors like telecommunications and consumer goods. This is interpreted as a sign that, amid rising market volatility, companies with stable earnings, dividends, and shareholder return policies are emerging as attractive investment alternatives.

According to MP Doctor on the 9th, the KOSPI closed at 5,018.85, down 40.84 points (0.81%) from the previous trading day. The cumulative decline from the 2nd—the first trading day of the month—through the 9th reached 12.42%. During the same period, the KRX Semiconductor Index plunged 18.6%, leading the market’s downturn.

In contrast, defensive sectors showed relatively steady performance. Since the start of the month, the Consumer Discretionary Index has risen 10.38%, posting the highest return among all sectors. The Broadcasting & Telecommunications Index also rose 8.53% over the same period. The Healthcare Index and the Banking Index fell 0.75% and 2.37%, respectively, showing relatively modest declines.

Among individual stocks, telecommunications stocks also showed notable strength. During the same period, KTCorporation(030200)rose 12.74%, and LG Uplus(032640)rose 12.30%. SKTelecom(017670)also rose 2.65%. Analysts attribute the fact that all three major telecommunications companies posted gains even as the KOSPI recorded a double-digit decline to a combination of improving earnings and expectations of expanded shareholder returns. LG Uplus is currently proceeding with a 90 billion won share buyback, while KTCorporation is expected to resume a 250 billion won share buyback in the first half of next year. According to Shinhan Investment Securities, the projected shareholder return rates for 2027 are 7.7% for KTCorporation, 5.1% for LG Uplus, and 4.4% for SKTelecom.

Several stocks in the food and beverage sector also showed relatively strong performance. During this period, BGF Retail(282330)rose 4.74%, LOTTE WELLFOOD(280360)rose 4.01%, and CJ CheilJedang Corp(097950)rose 3.06%. Binggrae(005180)(2.92%), ORION(271560)(1.66%), SamyangFoods(003230)(1.23%), and Nongshim(004370)(1.01%) also posted gains.

Among individual stocks, KRAFTON(259960)rose 19.44%, while HYUNDAIDEPARTMENTSTORECO.,LTD(069960)(10.92%) and Kakao(035720)(9.00%) also saw significant gains. These stocks share the common trait of having recently announced plans to buy back and cancel their own shares. Earlier this month, KRAFTON announced a 300 billion won share buyback and cancellation program, while Kakao announced a 150 billion won program. HYUNDAIDEPARTMENTSTORECO.,LTD also announced that it would cancel 21 billion won worth of treasury stock it had previously acquired. It is believed that expectations of enhanced shareholder value through share buybacks and cancellations—amid a sharp market decline—supported investor sentiment and served as a factor in defending stock prices.

Securities analysts advise that, given the likelihood of a limited short-term rebound in the domestic stock market, investors need to diversify their portfolios toward sectors with strong defensive characteristics. They explain that while AI-related stocks have recently experienced an excessive decline, it is unlikely that the steep upward trend seen in the past will be repeated, making it necessary to expand investment horizons beyond the AI sector.

Kim Dae-jun, an analyst at Korea Investment & Securities, suggested, “While semiconductors and hardware could rebound quickly if additional positive catalysts emerge, it is unlikely they will replicate past performance,” adding, “It is necessary to include sectors with higher defensive strength relative to the market in investment portfolios.” He continued, “Sectors such as healthcare and secondary batteries, which fell alongside the broader market during the downturn but saw more limited declines than the KOSPI, are worth watching,” adding, “Telecommunications and transportation are also worth keeping an eye on as they have their own individual catalysts.”

Lee Kyung-min, an analyst at DaishinSecurities, said, “As a rebound from key support levels is becoming visible, sectors with a high probability of breaking through the 40-day and 50-day moving averages or reversing the market sentiment include telecommunications, banking, pharmaceuticals and biotech, K-content, and food and beverages.” He added, “Since these sectors are rebounding based on support at previous lows, investors should use short-term price fluctuations as opportunities to increase their exposure.”