[Anchor]

Experts say that we need to monitor the stock market for about another two to three weeks to see how it will move from here. In particular, we must keep a close eye on whether the foreign sell-off of Korean stocks will stop and whether our stock market has the capacity to absorb the foreign sell-off.

Reporting follows from Kim Beom-joo.

[Reporter]

The recent plunge in the KOSPI was largely due to domestic investors failing to absorb the shares dumped by foreigners.

Foreigners net sold a total of 18 trillion won worth of shares over seven trading days from October 6 to October 15, while individuals and institutions net bought only around 13 trillion won, causing the KOSPI to drop by 20%.

The first half of the year was different.

From May 28 to June 5, foreigners unloaded more than 22 trillion won in shares in just six days, but individuals and institutions absorbed all of that volume, keeping the KOSPI index steady.

It is not uncommon for foreign investors to pull money out of Korea and semiconductors to invest in other countries and sectors.

However, domestically, the limit for the National Pension Service to invest in stocks is already maxed out, and individual investment capacity has noticeably weakened.

[Kim Dong-won / Head of Research, KB Securities: "Foreigners selling 3 trillion won a day back then (May and June) and selling 3 trillion won a day now have completely different impacts. That is because the supply-demand balance (domestic buying capacity) is thin."]

Outlooks are divided.

While some analyze that foreign investors could return as the earnings of Samsung Electronics and SK Hynix remain strong, others counter that investors, made sensitive by high interest rates and high inflation, might stay away from the stock market itself for a while.

[Lee Jae-man / Head of Global Investment Analysis, Hana Securities: "At what U.S. interest rate level did foreigners buy Korea? It was around 4.5%. However, with rates now exceeding 5%, it will likely not be easy for foreigners to buy our (stocks)."]

Therefore, attention is focused on what shareholder return policies Samsung Electronics and SK Hynix will present as they begin investor relations sessions starting on the 28th.

Furthermore, the U.S. Federal Reserve's interest rate decision on the 29th and the earnings announcements of major U.S. tech companies on the 30th are expected to be critical turning points.

Until these situations are sorted out to some extent, the stock market needs to catch its breath for the next two to three weeks.