South Korea's equity market has shown a pronounced rotation over the past month: the KOSPI rose 1.39%, but mid-cap and small-cap stocks gained 10.34% and 9.21%, respectively. Foreign investors concentrated 12.0458 trillion won of net selling on the KOSPI market in Samsung Electronics and SK Hynix, including preferred shares, while buying spread into construction, chemicals, machinery and materials. The two semiconductor heavyweights accounted for roughly 82% of total foreign net selling, limiting gains in market-cap-weighted benchmarks. The divergence comes despite record semiconductor exports, which reached $280 billion through August, up 171.58% from the same period last year. Analysts say a sustained KOSPI recovery will depend on foreign investors returning to semiconductor stocks, although buybacks, long-term demand and strong export conditions provide support. Views are divided over whether the September Chuseok holiday's fewer working days will temper export growth, but analysts broadly expect elevated export levels to continue.