The KOSPI rose 3.73% in August through the 28th despite declines in its two largest stocks, Samsung Electronics and SK Hynix. Construction led sector gains with a 30.32% advance, followed by machinery and equipment at 17.56% and metals at 16.45%. Mid- and small-cap stocks outperformed large-caps, with the KOSPI 200 rising 2.86% against an 11.77% gain for stocks outside the index and a 15.33% rise in the KOSPI 200 mid/small-cap index. Foreign investors sold a combined 4.81 trillion won of Samsung Electronics and SK Hynix through the 27th while buying Samsung SDI, LG Energy Solution, Naver, Doosan Enerbility, Korea Zinc and construction companies. Analysts said investors were diversifying beyond semiconductors and big tech toward infrastructure and healthcare, but warned that margin loans (borrowed funds used to invest) remained heavily concentrated in Samsung Electronics and SK Hynix. Total margin balances rose 14.4% to 33.1 trillion won as investor deposits fell 5.22 trillion won. Ultra-high-net-worth individuals continued to sell Samsung Electronics for a second consecutive month while shifting toward SK Hynix and other large-cap stocks.