KOSPI Surpasses 4,000 Milestone: Analysis of South Korea's Stock Market Performance

South Korea’s benchmark stock index, KOSPI, reached an unprecedented milestone on October 28 by crossing the 4,000-point threshold for the first time in history. However, this remarkable rally faced resistance soon after, as foreign and institutional investors engaged in profit-taking, igniting a sell-off during the early trading session. Experts point to a short-term consolidation phase following October’s 18% surge—a massive breakout dismantling the index’s long-standing reputation as the “Box-P,” a term used to describe its previously range-bound movements.

KOSPI’s Performance Metrics and Investor Sentiment

On October 28, as of 9:25 a.m. local time, KOSPI traded at 4,005.97, down 37.08 points or 0.91% from the prior trading session. The index had opened at 4,010.47, reflecting a 0.80% drop from Friday’s closing price of 4,042.83. Early trading saw a brief dip below the critical psychological level of 4,000 before rebounding above it.

Investor activity during the session revealed contrasting behavior: individual investors remained net buyers, purchasing KRW 7.726 trillion worth of shares, which partially offset significant selling by foreign investors (KRW 6.958 trillion) and institutional investors (KRW 548 billion).

Market researcher Han Ji-young of Kiwoom Securities emphasized KOSPI’s historic October performance, stating, “The monthly gain of 18% is the third-largest since 2000. The index, historically constrained by range-bound movement, tends to maintain momentum after breaking out of consolidation zones. This points to positive sentiment in the near term.”

Sector-Wide Insights: Winners and Laggards

KOSPI’s sector-wise performance presented a mixed bag of results, with certain industries showing strength despite profit-taking pressures. Leading sectors included electricity and gas (up 1.13%), IT (up 0.49%), and general services (up 0.02%). On the other hand, transportation and equipment (-1.38%), construction (-1.38%), and securities (-1.02%) underperformed on the day, indicating uneven momentum across the market segments.

Prominent blue-chip stocks also experienced mixed fortunes. Samsung Biologics outpaced others with a strong 3.06% gain, followed by Doosan Enerbility, which rose by 1.71%. Meanwhile, Samsung Electronics slid by 1.86% but remained at the crucial KRW 100,000 mark, and SK Hynix fell 1.68%, maintaining the KRW 520,000 level.

Market analysts noted that recent gains reflect healthy economic fundamentals rather than speculative activity. “The current rally shows a sustainable pattern normally observed when breaking past key resistance levels,” commented one expert, adding that global trends and macroeconomic conditions are supporting the upward momentum.

KOSDAQ Registers Positive Gains Amid Individual Buying

While KOSPI grappled with profit-taking challenges, South Korea’s technology-heavy KOSDAQ index recorded steady gains. As of early trading hours on October 28, KOSDAQ rose 12.66 points or 1.43%, reaching 895.74. Starting slightly higher at 902.82, the index saw a marginal increase of 0.12 points or 0.01% from the previous close at 902.70.

Investor dynamics mirrored the behavior observed in KOSPI. Individual investors emerged as the dominant buyers on the KOSDAQ, acquiring KRW 1.535 trillion worth of shares. These purchases were countered by foreign and institutional investor activity, with KRW 1.174 trillion and KRW 122 billion sold off, respectively.

Sector performance on the KOSDAQ showed notable gains in precision medical devices (up 1.09%) and IT (up 0.46%), whereas metals (-0.57%) and machinery (-0.12%) sectors declined. Key players on the index also delivered mixed results, with EcoPro (up 0.43%), Rainbow Robotics (up 0.58%), and PharmaResearch (up 0.94%) posting gains. In contrast, Alteogen (-0.31%) and EcoProBM (-1.21%) ended the session lower.

A market strategist commented on the broader trend within the KOSDAQ: “The rally reflects individual buying interest, but minor pullbacks are expected as the market adjusts to recent gains. While overall sentiment remains strong, short-term momentum may encounter barriers.”

Korean Won Shows Strength Against U.S. Dollar

South Korea’s currency gained traction against the U.S. dollar during the October 28 trading session. The won-dollar exchange rate opened stronger at KRW 1,421.0, reflecting a KRW 1.8 increase compared to the previous close of KRW 1,431.7.

Market watchers are closely monitoring whether KOSPI can sustain its 4,000-point level amid global economic volatility and investor profit-taking concerns. As the rally matures, many are focused on how foreign and institutional investors might adapt their tactics in response to broader market drivers. For now, KOSPI’s historic milestone underlines investor confidence in South Korea’s strong fundamentals and economic outlook, offering optimism for further developments in the months to come.