The KOSPI surged more than 8 percent on Monday, recovering the 8,000 level after one day. It plunged a day earlier enough to trigger a circuit breaker and a sell-sidecar, but rebounded on institutional buying and a rise in heavyweight semiconductor shares.

The KOSPI closed up 612.52 points, or 8.18 percent, at 8,096.93. It opened up 213.35 points, or 2.85 percent, at 7,697.76 and climbed as high as 8,119.09 in intraday trading.

The KOSPI tumbled 8.29 percent on the previous session to the 7,400 level, but regained 8,000 in a day. Buying on dips after the sharp drop and a rebound in U.S. semiconductor shares combined to quickly restore investor sentiment, it is interpreted.

By investor type, institutions were net buyers of 2.4978 trillion won, leading the rebound. Individuals and foreigners were net sellers of 614.6 billion won and 2.003 trillion won, respectively. Foreign selling continued, but institutions stepped in with large-scale buying and drove the rise.

Most of the top market-cap stocks rose. Samsung Electronics rose 8.97 percent to 322,000 won, recovering the 300,000-won level. SK Hynix jumped 15.91 percent to 2,215,000 won, climbing back above 2 million won.

Elsewhere, SK Square rose 13.51 percent, Samsung Electro-Mechanics gained 18.39 percent, LG Energy Solution rose 2.06 percent, Samsung Life Insurance climbed 4.66 percent and Samsung C&T gained 5.02 percent. Hyundai Motor ended flat, while HD Hyundai Heavy Industries fell 1.45 percent.

The market rebound was led by heavyweight semiconductor shares. Buying on dips flowed into Samsung Electronics and SK Hynix, which had fallen sharply in the previous session's rout, and the rebound in U.S. semiconductor shares also supported sentiment. Samsung Electro-Mechanics, SK Square and other electronics and semiconductor-related stocks also rose sharply, widening the index's gain.

The KOSDAQ also rebounded. The KOSDAQ closed up 56.42 points, or 6.19 percent, at 967.81. It fell more than 9 percent in the previous session but recovered the upper end of the 960 level in a day.

The session moved in the opposite direction from the previous day's rout. On June 8, circuit breakers and sell-sidecars were triggered in both the KOSPI and KOSDAQ markets, but early in the session on Monday the rebound was strong enough to trigger buy-sidecars in both markets.

Still, supply and demand uncertainty remains a variable as foreigners were net sellers of more than 2 trillion won on the KOSPI. The market sees whether the rebound in semiconductor shares continues, easing foreign selling and currency moves as key to further recovery.

In the Seoul foreign exchange market, the won stood at 1,515.30 per dollar, up 12.50 won from the previous session.