South Korea's Banking Index Rises 6.96% in July as Semiconductor Stocks Fall 12.73%

According to Korea Exchange data released on July 8, the KRX Banking Index rose 6.96% in July to 1620.81, outperforming the broader KOSPI which fell 12.73% in the same period. Major banking stocks including Shinhan Financial (up 11.31%), KB Financial (7.89%), and Hana Financial (5.07%) all gained ground, contrasting sharply with semiconductor leaders Samsung Electronics (down 11.76%) and SK Hynix (down 18.90%).

Investors shifted capital to undervalued sectors with stable earnings as profit-taking accelerated in semiconductor stocks. Food and beverage exports also drove gains, with industry data showing cosmetics exports hit a record 7 billion dollars in the first half of 2026, up 27.3% year-over-year, supporting companies like Orion, which rose 2.93% despite the broader market decline.