Lanterns Lit Below, All the Way to the Crest

DAILY MARKET NOTE / 28 OCT 2026

Back above 6,000 after 10 sessions,
Two-thirds of the gain came intraday

KOSPI +6.63%, closing at 6,012.44; KOSDAQ +3.69%The catalyst: SK hynix's pre-market Q3 results, with ₩83.3338tn in operating profit and roughly ₩100tn in planned 2026 shareholder returnsThe opening gap was +2.23%; the remaining 4.40 percentage points came from buying during the session, with a buy-side program-trading sidecar triggered at 09:54Samsung Electronics +9.01%; SK hynix +10.89%; together they accounted for roughly 70% of the KOSPI's advanceForeign investors +₩816bn; institutions +₩961bn; retail investors −₩1.802tn

The SK hynix figures set the stage before the opening bell. Buying through the session carried the market toward its highs.

MARKET PATH / 01

+2.23% A measured open, a 14:30 high, +6.99% and a close near the top

How the rally developed through the trading day

IN PLAIN TERMSOf the KOSPI's 374-point gain, about one-third was priced in at the open. The rest came during trading.The index first crossed 6,000 at 10:57, pulled back toward 5,950 around midday, then reclaimed 6,000 at 12:28.The close finished within the top 7% of the day's high-to-low range, the reverse of October 27.

KOSPI · 09:00~15:30Modest open → 09:54 buy-side sidecar → morning high → around 5,950 at midday → 14:30 session high → close near 6,010

Chart zooms in on the intraday range; the previous close of 5,638.34 lies below the plotted area.

OPEN5,763.85+2.23%

HIGH6,032.28+6.99%

LOW5,745.51+1.90%

CLOSE6,012.44+6.63%

THE READ

Early lowThe session low came at 09:02. From seven minutes after the open, the index never traded below its opening level again.

Gains built through the dayThe earnings news was not fully reflected in the opening price. Buyers priced it in progressively, reversing the previous day's pattern.

Pullbacks heldBoth the lunchtime dip and the early-afternoon pullback stopped above 5,950.

Closing strengthThe closing auction shaved about nine points off the index, but it still finished near the high end of the range.

OPEN · MORNING

+2.23% at the open; roughly 240 points added by the morning high

The day's low of 5,745.51 at 09:02 was followed by a prompt rebound.A buy-side sidecar at 09:54; first move above 6,000 at 10:57.

MIDDAY

Tested 5,950 after 11:00, reclaimed 6,000 at 12:28

Held near 5,950 at 11:13 and again at 12:01.Climbed as high as the 6,023 area at 12:50.

AFTERNOON

Hit 6,032.28 at 14:30; finished near 6,010

After an afternoon low of 5,973.09 at 13:38, moved back higher at 14:02.The KOSDAQ peaked at 773.28 before closing at 771.28.

WHY / 02

Record SK hynix earnings and a ₩100tn shareholder-return plan concentrate buying in chip heavyweights

The primary catalyst and the forces reinforcing it

IN PLAIN TERMSThe main driver was SK hynix's Q3 earnings and shareholder-return announcement before the open.U.S. semiconductor strength +3.60%and expectations for Samsung Electronics' October 29 results and dividend announcement provided additional support.

MAIN DRIVER · SK hynix beats earnings expectations and announces substantial capital returns

EarningsQ3 operating profit of ₩83.3338tn, roughly 8% above the of ₩76.9640tn; operating margin of 80%.

Shareholder returnsAbout ₩100tn this year; a Q3 dividend of ₩20,000 per share. CATALYST 06

What easedSome concerns that memory-chip profits had already peaked, supported by long-term supply agreements extending through 2028.

CaveatThese are preliminary, unaudited results.

~8%By how much Q3 operating profit exceeded consensus

SHOW SUPPORTING DETAILS

Revenue: ₩104.6155tn; quarter-on-quarter +32%; year-on-year +327.9%

FnGuide consensus: revenue ₩98.2257tn; operating profit ₩76.9640tn.

Balance sheet: net cash of ₩98.7tn; plans to list U.S. subsidiary Solidigm have been dropped.

Brokerage view: longer-term supply agreements reinforce the demand outlook for memory; shareholder returns could relieve some pressure on stock supply and demand.

SECONDARY DRIVERS · Three straight gains for U.S. chips; Samsung results and dividend decision due October 29

U.S. session +3.60%: all 30 constituents advanced; the Nasdaq +1.18%

Financing catalystA $63bn financing structure for Broadcom AI chips destined for Anthropic: three banks and Blackstone fund a special-purpose vehicle, which buys and leases the chips.

Samsung ElectronicsFinal Q3 results on October 29; preliminary operating profit of ₩107.4tn; expected confirmation of roughly ₩30tn in cash dividends under a ₩90tn–₩110tn shareholder-return target for this year.

CaveatThese are pre-announcement expectations. The October 29 disclosures will provide the answer. NEXT 07

+9.01%Samsung Electronics: ₩242,000, one day ahead of results.

SHOW SUPPORTING DETAILS

U.S. markets, October 27 local time: the Dow +0.03% · S&P 500 +0.60%; the Nasdaq +1.18%

Samsung's preliminary figures: revenue ₩195tn; operating margin 55.1%.

Brokerage view: record earnings and a relatively low valuation, combined with increased shareholder returns, could help close the valuation discount.

MONEY / 03

Foreign and institutional investors bought the two chip giants;
retail investors sold nearly ₩2tn

Who drove today's index move

IN PLAIN TERMSForeign investors bought for a second straight session and institutions for a fourth; combined KOSPI net buying was ₩1.777tn.Samsung Electronics and SK hynix accounted for 56% of the value of stocks sold on a net basis by retail investors.

FOREIGN INVESTORS · KOSPI CASH

+₩816bn

StreakOct. 27 +₩593bn, marking a second consecutive session of net buying; foreigners were net sellers on October 23 and 26.

ConcentrationSK hynix and Samsung Electronics made up 46.7% of the combined value of stocks net-bought in both markets; SK hynix saw a swing to +₩386.5bn in foreign net buying.

FuturesForeign investors' position in futures: −₩368bn, moving in the opposite direction to cash equities.

Program trading +₩537.6bn in net buying, below October 27's +₩716.6bn.

Buy-side trigger at 09:54 for a second straight session; program-trading buy quotations were suspended for five minutes.

Corporate buying registered only about +₩25bn in net purchases; foreign and institutional investors led the session.

Trading value₩19.8368tn, or 1.33 times the five-day average.

NET KOSPI BUYERSForeign and institutional investors

NET KOSPI SELLERSRetail investors

Net buying by stock · regular session · KRW 100mn
Stock	Foreign	Institutional	Retail
Samsung Electronics	+3,748	+3,969	-7,548
SK hynix	+3,865	+2,355	-6,196
Samsung Electronics preferred	+1,640	-299	-1,345
SK Square	-1,260	+2,019	-744
Samsung Electro-Mechanics	-131	+1,142	-1,088

Top foreign net sale: SK Square, −₩126bnNo. 3 institutional net buy: SK Square, +₩201.9bnTop retail net buy: HD Hyundai Heavy Industries, +₩46.1bn

DETAILED FLOWS

Net buying by investor group · KRW 100mn
Investor group	KOSPI	KOSDAQ	Combined
Foreign	+8,160	-1,850	+6,310
Institutional	+9,610	+2,240	+11,850
Retail	-18,020	-310	-18,330

On the KOSDAQ, foreigners were net sellers of −₩185bn; institutions were net buyers of +₩224bn.

Futures and program trades · October 28 vs. 27 · KRW 100mn
Category	Oct. 28	Oct. 27
ForeignKOSPI 200 futures	-3,680	+1,490
InstitutionalKOSPI 200 futures	-1,110	-410
RetailKOSPI 200 futures	+3,640	-1,340
Program trading	-175	-887
Non-arbitrageProgram trading	+5,376	+7,166
TotalProgram trading	+5,201	+6,279

Five sessionsOctober 22–28: foreign KOSPI cash flows −₩220bn; institutions +₩2.262tn; retail −₩2.270tn; foreign futures +₩1.287tn

Short sellingKOSPI ₩1.1623tn (₩993.7bn on Oct. 27); SK hynix ranked first at ₩160.4bn.

Foreign buyingRanks 4–6: Samsung E&A +₩68.1bn; KB Financial Group +₩22bn; Pan Ocean +₩21bn

Foreign sellingRanks 2–4: Samsung SDI −₩37bn; Simmtech −₩34.9bn; LG Energy Solution −₩32.4bn

Institutional buyingRanks 4–5: Samsung Electro-Mechanics +₩114.2bn; Samsung SDI +₩64.5bn

Institutional sellingRanks 1–3: S-Oil −₩39.6bn · NAVER −₩30bn; Samsung Electronics preferred −₩29.9bn

SECTOR / 04

Where the strength was—and wasn't

The distribution of gains and losses matters more than a leaderboard

IN PLAIN TERMS63.6% of KOSPI stocks advanced. The index surged more than 6%, but market breadth was slightly narrower than on October 27.Samsung Electronics and SK hynix again contributed about 70% of the index's gain.All 15 Semiconductor Top 15 constituents advanced. Dividend hopes lifted insurers, brokerages and preferred shares, while shipbuilders were slightly weaker.

STRONG

Rainbow RoboticsKOSDAQ stock+15.08%

SK SquareStock+11.23%

Samsung Electronics preferredStock+11.10%

K-AI Semiconductor TOP2+KRX thematic index+9.19%

Electrical & ElectronicsKOSPI sector+9.02%

WEAK

Publishing & Media ReproductionKOSDAQ sector-1.33%

Non-Metallic MineralsKOSPI sector-0.33%

Shipbuilding TOP10KRX thematic index-0.20%

Samsung BiologicsStock-0.15%

Paper & Wood ProductsKOSPI sector-0.12%

KOSPIBreadth fell from 65.0% to 63.6%, although the index gain more than doubled from October 27.

KOSDAQBreadth rose from 62.8% to 65.8%; the index regained its October 23 closing level.

Both marketsShare of declining stocks edged down from 30.9% to 30.8%.

Distance to recoverTwo days +9.93%; the index remains 14.2% below its October closing high of 7,003.74 on October 2.

Of the KOSPI's 6.63% gain, an estimated 4.80 percentage points came from these two stocks.

SemiconductorsAll 15 Semiconductor Top 15 names rose; 19 of 20 AI semiconductor names also gained.

Substrates & componentsSamsung Electro-Mechanics +8.74%; Q3 operating profit of ₩691bn, versus the year-earlier period +165%; shortages forecast for AI-server components.

EquipmentKOSDAQ Machinery & Equipment +6.58%; Jusung Engineering +6.12%; Wonik IPS +6.08%; EO Technics +5.95%

FinancialsInsurance +6.43%; Samsung Life Insurance +8.82%; 27 of 29 brokerage stocks rose; KB Financial Group +4.34%

DividendsKOSPI preferred-share index +6.30%; ahead of Samsung Electronics' dividend decision, and companies with equity stakes strengthened.

ShipbuildingHD Korea Shipbuilding & Offshore Engineering's Q3 operating profit versus a year earlier +37.3% and versus the previous quarter -12.0%; the stock -2.03%; five of ten Shipbuilding TOP10 constituents declined.

SECTOR DATA

Estimated KOSPI contribution · market-cap basis
Stock	Change	Contribution
Samsung Electronics	+9.01%	+2.51%p
SK hynix	+10.89%	+2.29%p
Samsung Electronics preferred	+11.10%	+0.33%p
SK Square	+11.23%	+0.26%p
Samsung Electro-Mechanics	+8.74%	+0.17%p
Samsung Life Insurance	+8.82%	+0.10%p
Top 10 total		+5.77%p
All others		+0.87%p

The share of the gain from outside the top ten market-cap stocks was about 13% on October 27, +0.41%p → +0.87%pand again about 13% on October 28. Many stocks rose, but two names still powered the index.

Advancers and decliners · includes limit-up/limit-down stocks
Market	Advancing	Declining	Unchanged	Advancing share
KOSPI	582	289	44	63.6%
KOSDAQ	1,147	529	68	65.8%

October 27 & 28 · closing-price returns · two-day change vs. Oct. 26 close
Indices and stocks	Oct. 27	Oct. 28	Two days
KOSPIIndex	+3.09%	+6.63%	+9.93%
KOSDAQIndex	+2.29%	+3.69%	+6.06%
Semiconductor Top 15KRX thematic index	+4.76%	+8.42%	+13.58%
Secondary Battery TOP10KRX thematic index	+3.09%	+2.98%	+6.16%
SK hynixStock	+5.18%	+10.89%	+16.63%
Samsung ElectronicsStock	+4.23%	+9.01%	+13.62%

Large capsSamsung Life Insurance +8.82%; KB Financial Group +4.34%; Hyundai Motor +1.89%; LG Energy Solution +1.83%

KOSDAQ namesRainbow Robotics +15.08%; Simmtech +8.79%; EcoPro +3.09%; Alteogen +2.06%

Sectors · 20 shared across both markets · KOSPI order
Sector	KOSPI	KOSDAQ
Electrical & Electronics	+9.02%	+4.62%
Manufacturing	+7.41%	+4.16%
Medical & Precision Equipment	+5.30%	+2.47%
Financials	+5.05%	+2.73%
Distribution	+4.62%	+3.68%
Machinery & Equipment	+4.18%	+6.58%
Telecommunications	+3.56%	-0.01%
IT Services	+2.59%	+3.35%
Metals	+2.18%	+1.58%
Construction	+2.07%	+0.50%
Transportation Equipment & Parts	+1.76%	+2.74%
Chemicals	+1.46%	+4.35%
Food, Beverages & Tobacco	+1.32%	+0.62%
General Services	+1.15%	+2.22%
Transportation & Warehousing	+0.84%	+1.28%
Pharmaceuticals	+0.24%	+0.99%
Textiles & Apparel	+0.06%	+0.04%
Entertainment & Culture	-0.11%	+1.30%
Paper & Wood	-0.12%	-0.23%
Non-Metallic Minerals	-0.33%	+3.17%

Single-market sectorsKOSPI Insurance +6.43%; Securities +5.46%; Electricity & Gas +2.35%; Real Estate +0.39%; KOSDAQ Publishing & Media Reproduction -1.33%

Thematic indices · Korea Exchange · Oct. 28 order
Theme	Oct. 27	Oct. 28
K-AI Semiconductor TOP2+	+6.60%	+9.19%
Semiconductor Top 15	+4.76%	+8.42%
AI Semiconductors	+5.54%	+8.27%
Blue Chip 25	+3.56%	+7.74%
Internet TOP10	-0.28%	+4.92%
AI Power Infrastructure	+1.87%	+4.27%
K-AI Defense TOP5+	+1.06%	+3.43%
K-AI Secondary Batteries	+3.28%	+3.38%
Secondary Battery TOP10	+3.09%	+2.98%
EV Top 15	+2.48%	+2.69%
K-AI KOSDAQ Biotechnology	-2.17%	+2.35%
Biotech Licensing	-1.21%	+2.33%
High Dividend 20	+0.69%	+1.97%
BBIG	-0.30%	+1.93%
Biotechnology TOP10	-1.79%	+0.78%
Gaming TOP10	-0.17%	+0.23%
Shipbuilding TOP10	+0.99%	-0.20%

KOSPI top 10 by market cap · close in KRW
Stock	Close	Change
Samsung Electronics	242,000	+9.01%
SK hynix	1,487,000	+10.89%
Samsung Electronics preferred	190,100	+11.10%
SK Square	921,000	+11.23%
Samsung Electro-Mechanics	1,306,000	+8.74%
LG Energy Solution	389,500	+1.83%
Samsung Biologics	1,372,000	-0.15%
Hyundai Motor	296,000	+1.89%
Samsung Life Insurance	277,500	+8.82%
KB Financial Group	154,000	+4.34%

Limit-upKOSPI: 0; KOSDAQ: 6. Two KOSDAQ stocks closed limit-down.

CHANGE / 05

Yesterday's questions, today's answers

Checking the conditions set at the previous close

YESTERDAY → TODAY

SK hynix closed at ₩1,487,000 on earnings day, with foreigners returning to net buying: Check 01 reached Stage 2.Foreign net buying continued for a second session, with a larger amount than on Oct. 27: Check 02 also reached Stage 2.Advancing stocks made up 63.6%, above half but below 65.0%: Check 03 met Stage 1 only.

SK hynix closing priceStage 1: ₩1,341,000 or higher · Stage 2: a return to foreign net buying · Both stages met

1,341,000

→

1,487,000

Foreign KOSPI net buyingStage 1: remain net buyers · Stage 2: at least +₩593bn · Both stages met

+₩593bn

→

+₩816bn

Share of KOSPI stocks advancingStage 1: 50% or more · Stage 2: 65.0% or more · Only Stage 1 met

65.0%

→

63.6%

01 · Foreign flow into SK hynix turned from −₩41.3bn → +₩386.5bn03 · The day after the October 21 rebound, only 19.0% of stocks rose. This is the first two-day winning streak since October 16–19.

CATALYST / 06

SK hynix: ₩83tn in quarterly operating profit and roughly ₩100tn in shareholder returns

The single event the market priced in today

DOMESTIC RESPONSE · SK HYNIX

+10.89%

Quarterly revenue tops ₩100tn for the first time, with an 80% operating margin · About ₩100tn in 2026 shareholder returns

WHAT · The announcement

EarningsPreliminary Q3 results released before the October 28 open; earnings call at 09:00 KST.

Board decisionsQ3 cash dividend of ₩14tn (₩20,000 per share) and a ₩20tn share-repurchase authorization.

How SK hynix plans to deliver roughly ₩100tn in FY2026 shareholder returns

30+401010+

Cash dividendsBuybacks & cancellations: ₩60tn+

Cash dividends₩30tn or more; Q3 dividend record date is November 30.

August authorization₩40tn of repurchases and cancellations; purchases completed October 21.

New authorization₩10tn of repurchases and cancellations; purchases run October 29 through January 28.

Still undecidedAt least ₩10tn of repurchases and cancellations, not yet approved.

ExcludedAbout ₩10tn of the new ₩20tn repurchase program is earmarked for employee compensation and is not counted in the ₩100tn shareholder-return total.

TERMS · The reported figures

SK hynix Q3 · consolidated · preliminary
Revenue	₩104.6155tn QoQ +32%; YoY +327.9%
Operating profit	₩83.3338tn QoQ +38%; YoY +632.1%
Operating margin	80% · 76% in Q2
Net income	₩39.7756tn; QoQ -58%
Consensus	Revenue ₩98.2257tn; operating profit ₩76.9640tn

Dividend₩20,000 per share: ₩10,000 linked to earnings, plus a ₩10,000 special dividend distributing gains from the Kioxia investment (the Japanese NAND flash-memory company).

Net incomeNon-operating losses of ₩32.625tn, notably a ₩22.92tn investment-asset valuation loss and ₩11.63tn in foreign-exchange-related losses; Q2 had included about ₩63tn in Kioxia-related gains.

IMPACT · Implications for shareholders and the market

Demand visibility with 14 customers secure more than 50% of 2027–2028 production capacity.

Product outlookSK hynix expects next-generation HBM4 to overtake HBM3E in both shipments and revenue in Q4.

Stock flows₩20tn in on-market repurchases start October 29, reopening a source of corporate demand after the prior program ended on October 21.

Unresolved2027 investment is set to rise substantially, but no amount has been disclosed.

Next confirmationSamsung Electronics' October 29 earnings and dividend announcement. NEXT 07

MARKET · The immediate response

Cash equitiesSK hynix +10.89%; SK Square +11.23%; Semiconductor Top 15 +8.42%

FlowsSK hynix led foreign net buying at +₩386.5bn · MONEY 03

NEXT / 07

What to watch next session

Three tests for tonight and Thursday, October 29. Stage 1 keeps today's interpretation intact; Stage 2 would strengthen it.

Can the KOSPI hold 6,000 at the close?

TodayClosed at 6,012.44; its first close above 6,000 since October 14.

Stage 1October 29 close at or above 6,000.

Stage 2A close above today's high of 6,032.28.

Can Samsung Electronics keep rising after the earnings and dividend announcements?

TodayClosed at ₩242,000; foreign net buying of +₩374.8bn

Stage 1October 29 close at or above ₩242,000.

Stage 2Stage 1, plus continued foreign net buying of Samsung Electronics.

Will foreign cash and futures flows move in the same direction?

TodayCash equities +₩816bn; futures −₩368bn

Stage 1Foreigners buy KOSPI cash equities for a third straight session on October 29.

Stage 2Stage 1, with foreign futures flows also turning net positive.

UPCOMING DATES

Oct. 29 (U.S. time): U.S. advance Q3 GDP; September PCE inflation; Amazon, Intel and SanDisk earnings.Oct. 30: Bank of Japan rate decision.Nov. 3 (U.S. time): U.S. midterm elections.Nov. 5: planned cancellation of 23.69mn SK hynix treasury shares.Nov. 16: scheduled final Q3 results filing by Samsung E&A.Nov. 26: Bank of Korea Monetary Policy Board meeting.

SK hynix supplied the numbers before the open, but the buying accumulated throughout the day—and the weight of that buying again rested on two chip giants. The next answers lie in the October 29 close and Samsung Electronics' results.

SOURCES & DATA NOTES

As of October 28, 2026: index, sector and stock closing prices from the Korea Exchange (KRX) regular session, 09:00~15:30; overseas news and releases publicly available as of 20:00 KST. Indices: KOSPI open 5,763.85, high 6,032.28, low 5,745.51; KOSDAQ open 756.90, high 773.28, low 756.57. Confirmed regular-session figures collected independently. Previous close above 6,000: October 14 (6,008.81). Highest October close: October 2 (7,003.74). Intraday chart: five-minute trajectory reconstructed from downloaded one-minute KOSPI bars on Toss Securities. Key timestamps, including crossings above 6,000 at 10:57 and 12:28, reflect the original one-minute data. All times KST. Buy-side sidecar timing: NewsPim · Sisa Journal Cash flows: independently captured KRX regular-session data (by investor type at 15:38; by individual stock at 15:51). Foreign flows include other foreign investors. The 'other corporations' figure is inferred by reconciling investor net flows to zero. After-hours trades excluded; historical 'since' comparisons use daily captures beginning August 24. Media reports vary on closing fund flows (foreign net buying ranged from +₩828.8bnto ₩1.1594tn, depending in part on inclusion of Nextrade): Sisa Journal · NewsPim · Aju Business Daily Futures and program trading: KOSPI 200 futures flows by investor type at 15:49; regular-session program trading as of 15:32. Program trades and investor-group trades use different classifications and must not be added together. Traded value from KRX at 15:38. Market breadth: final KRX numbers of advancing and declining stocks. Advancers include limit-up names (KOSPI 582 of 915; KOSDAQ 1,147 of 1,744). Short-selling totals combine KRX regular trading and Nextrade's main market. Sectors and index contributions: KRX industry and thematic indices, including constituent and breadth data. Estimated contributions calculate each company's market-cap increase divided by the October 27 KOSPI market cap (estimated at about ₩4,654tn); these may differ from official contribution points. KOSDAQ stock moves and those of Samsung Life and KB Financial: NewsPim · Aju Business Daily SK hynix: company announcements on earnings, dividends, buybacks, shareholder-return targets and long-term supply agreements (PR Newswire); quarter-on-quarter and year-on-year growth: Financial News; net cash and Solidigm: JoongAng Economy News; Q4 buyback and 2027 investment from the earnings call (The Elec); buyback period and share count from the filing (Hyundai Economic Daily); dividend record date: Women's News; non-operating income and losses: Newsway; FnGuide consensus (NewsPim); scheduled share cancellation: NewsPim Samsung Electronics: preliminary earnings and shareholder-return target: Segye Finance; earnings-call schedule: WikiTree; dividend expectations and equity-investee companies: E Today; Q3 dividend record date: Global Economic Other corporate results: Samsung Electro-Mechanics Q3 and MLCC outlook: The Korea Economic Daily; HD Korea Shipbuilding & Offshore Engineering Q3: News1; Q2 operating profit of ₩1.6451tn: Youth Daily; share prices of both companies independently captured. U.S. markets: closing indices as of October 27 local time (independently captured); all 30 PHLX Semiconductor Index constituents: The Korea Economic Daily; $63bn financing structure: Broadcom announcement (October 26 U.S. time; deliveries begin in 2027). Brokerage commentary: Lee Kyung-min of Daishin Securities on long-term contracts, memory demand and shareholder-return flows (Aju Business Daily); Lee Jae-won of Yuanta Securities and Kim Dong-won of KB Securities on peak-memory-profit concerns and narrowing the valuation discount (Global Economic) Calendar: Fed decision and press conference: Federal Reserve calendar; Big Tech earnings: The Korea Economic Daily; economic releases, Korean earnings, the Bank of Japan and U.S. midterms: NewsTop