South Korea’s KOSPI Regains 3,200 Level, Driven by Robust Foreign and Institutional Buying

South Korea’s benchmark KOSPI Index surged past the key 3,200 level on October 21, supported by substantial foreign and institutional investor activity. As of 9:37 a.m. local time, the KOSPI was trading at 3,204.35 points, reflecting a gain of 16.14 points or 0.48% compared to the previous session, according to data from the Korea Exchange. The session opened on a positive note at 3,191.11 points—up 3.04 points or 0.10%—from the prior close of 3,188.07, with increased momentum seen throughout the morning.

---

Foreign and Institutional Investors Drive the Rally

Foreign and institutional investors played pivotal roles in pushing the KOSPI higher. On the primary exchange, foreign investors net purchased shares worth 262.9 billion won, while institutional investors contributed with net buying of 57.9 billion won. Conversely, retail investors offloaded shares, registering a net sell of 330.6 billion won during early trading hours.

---

Industry Analysis: Bullish Sectors Dominate

The KOSPI saw stronger gains across several industries, with notable performances in pharmaceuticals (+1.45%), metals (+1.17%), electrical and electronic products (+0.75%), and manufacturing (+0.64%). Other outperforming sectors included chemicals (+0.60%) and machinery & equipment (+0.60%). However, declines were observed in construction (-1.53%), securities (-1.03%), insurance (-1.00%), transportation and warehousing (-0.53%), and financials (-0.14%).

---

Mixed Performance Among Leading Stocks

South Korea’s large-cap stocks showed mixed results during the session. Tech giants like Samsung Electronics gained 1.19%, while SK Hynix saw a stronger uptick of 1.9%. In addition, financial leader KB Financial and energy firm Doosan Enerbility advanced by over 1% each. On the downside, automakers Hyundai Motor and Kia Motors retreated by approximately 1%, with Samsung Biologics also losing ground.

---

Analyst Takes: Recovery in View Amid Sector Adjustments

Han Ji-young, an analyst from Kiwoom Securities, noted SK Hynix’s recovery amid concerns about its competitive footing in the high bandwidth memory (HBM) market for 2026, which had caused recent declines. “After last week’s drop, we’re witnessing a technical rebound for SK Hynix,” Han said.

She added that sectors like defense and banking, which have faced corrections since July, could see renewed momentum. "We believe second-quarter earnings being announced later this week will highlight strong profitability and improve market sentiment around shareholder returns," she said.

For investors, Han recommended a cautious but strategic approach: "Even if we see volatility in leading stocks early in the week, it’s better to adopt a buy-on-dip strategy rather than reducing positions."

---

KOSDAQ Dips as Tech Stocks Underperform

While the KOSPI gained, South Korea’s tech-heavy secondary market, the KOSDAQ Index, recorded a modest decline in the morning session. As of 9:37 a.m., the index slipped 2.26 points or 0.28%, settling at 818.55 points. The KOSDAQ opened slightly lower at 819.84—down 0.83 points or 0.10%—from the prior session’s close of 822.15.

Investor activity mirrored the KOSPI’s trends but in reverse. Foreign investors offloaded a net 25.6 billion won, while institutions sold stocks worth 5.1 billion won. Meanwhile, retail investors stepped in as net buyers, investing 32.3 billion won.

---

Sector Highlights and Notable Stocks on KOSDAQ

Sector-wise performance on the KOSDAQ remained mixed. Gains were relatively mild in entertainment and culture (+1.21%), chemicals (+0.69%), and pharmaceuticals (+0.66%), while general services (-1.06%), communications (-0.68%), and transportation & warehousing (-0.36%) saw declines.

In terms of high-cap KOSDAQ stocks, EcoPro BM climbed 1.00%, while Peptron surged 5.26% and PharmaResearch added 0.72%. However, stocks such as Altogen (-0.92%), HLB (-1.33%), and LIG Nex1 (-1.49%) ended in the red. Battery play EcoPro decreased 0.81%, with Sam Chun Dang Pharm registering a marginal decline of 0.41%.

---

Forex Market Update: South Korean Won Weakens

In the foreign exchange market, the South Korean won weakened slightly against the U.S. dollar. The local currency opened at 1,392.1 won per dollar, depreciating by 0.9 won compared to the previous session’s close of 1,393.0 won.

---

Summary

The KOSPI’s return to the 3,200 level reflects increased optimism led by foreign and institutional buying activity. While broader market trends appear bullish, early losses in the KOSDAQ and sector-wise disparities underline investor caution. Analysts suggest a buy-on-dip strategy amid ongoing volatility, pointing to earnings reports later in the week as a catalyst for broader market sentiment. The week’s trading will likely hinge on how external macroeconomic factors interact with domestic earnings momentum.