KOSPI Bounces Back Amid US Market Optimism: NAVER and Dunamu Lead Gains

The KOSPI index staged an impressive recovery on September 29, halting a three-day losing streak, thanks to upbeat sentiment driven by a rally in U.S. equity markets. Despite continued selling pressure from retail investors, substantial buying activity by foreign and institutional investors propelled the index to close over 1% higher, settling at the 3,430 mark.

KOSPI Soars on Foreign Capital Inflow

The benchmark index gained 45.16 points, or 1.33%, to close at 3,431.21, according to the Korea Exchange. It opened at 3,414.43, marking a 0.84% rise from the prior session’s close at 3,386.05, and sustained upward momentum throughout the day.

Jaewon Lee, a research analyst at Shinhan Investment Corp, cited renewed foreign capital inflow as the key driver behind the rebound, attributing it to the recovery in the U.S. stock market. “Key events, like the potential U.S. government shutdown and forthcoming economic indicators, will likely dictate market trends through the holiday period,” Lee explained. He added that developments in key areas, such as tariff negotiations and post-holiday Q3 earnings disclosures, are expected to influence the market’s trajectory moving forward.

Institutional Buying and Blue-Chip Gains

Market data revealed a net purchase of 556.6 billion won by foreign investors, paired with domestic institutional buying of 396.5 billion won. Conversely, retail investors net sold shares worth 983.8 billion won, continuing their trend of profit-taking.

Major blue-chip stocks registered robust gains. Industry giant Samsung Electronics rose 1.08%, SK Hynix surged 3.71%, and KB Financial gained 2.66%. However, it was NAVER that stole the limelight, skyrocketing by 7.02%—an increase of 18,000 won—to close at 274,500 won.

The surge was spurred by reports of NAVER’s potential acquisition of Dunamu, the operator of South Korea’s leading cryptocurrency exchange, Upbit. Domestic media outlet Dong-A Ilbo previously disclosed that NAVER was integrating Dunamu into its corporate portfolio, boosting NAVER’s stock over the last three trading sessions.

Dunamu also saw a significant lift, with its unlisted shares climbing 9.86% in value to close at 379,000 won through Securities Plus trading—marking a year-to-date high. Analysts view the NAVER-Dunamu partnership as a strategic maneuver poised to create substantial business synergies. Junho Lee, a researcher at Hana Securities, remarked, “The collaboration between NAVER and Dunamu lays a strong foundation for innovative business models, presenting a lucrative investment opportunity.”

KOSDAQ Joins the Advance

The KOSDAQ index followed a similar trajectory, gaining 11.52 points, or 1.38%, to close at 846.71. Starting the day at 840.62, up 5.43 points, or 0.65%, from the prior session, the index posted broad-based gains.

Likewise, foreign investors and domestic institutions emerged as net buyers on the KOSDAQ, acquiring 79.3 billion won and 136 billion won worth of shares, respectively. Retail investors, however, sold off 195 billion won in stocks, mirroring trends observed on the KOSPI.

Strong performances among KOSDAQ constituents further buoyed the index. Alteogen rose 4.25%, Peptron surged 4.32%, and Samchundang Pharmaceutical gained 1.85%. EcoPro, a critical player in battery materials, added 0.62%. The only notable laggard among major components was Rainbow Robotics, slipping by 0.32%.

Korean Won Strengthens Against Dollar

In the foreign exchange market, the Korean won appreciated against the U.S. dollar. The USD/KRW exchange rate fell 13.7 won from the prior day’s close, ending the week at 1,398.7 won per dollar. The strengthening of the won aligns with improved investor sentiment and a favorable trading environment in South Korea.

Outlook: Optimism Meets Caution

With foreign capital returning and key blue-chip stocks showing strength, the KOSPI and KOSDAQ indices have garnered positive momentum heading into the holiday period. That said, market participants remain cautiously optimistic, keeping an eye on developments such as U.S. political negotiations, global economic data, and the implications of NAVER’s prospective alliance with Dunamu. As these factors play out post-holiday, South Korea’s equity markets are expected to take definitive cues for their next direction.