KOSPI Surpasses 3400 Mark for Fourth Consecutive Session: Record-Breaking Rally Continues

The KOSPI index has shattered records once again, closing above the 3400 mark for the fourth consecutive trading session. This milestone signifies ongoing investor confidence and robust market momentum. Driven by heavy buying from individual and foreign investors, the benchmark index continues to defy expectations, outpacing institutional sell-offs to maintain its upward trajectory.

Record-Setting Numbers: KOSPI Reaches New Highs

On Wednesday, the Korea Exchange reported that the KOSPI closed at an all-time high of 3407.31 points, increasing by 11.77 points (0.35%) from the previous session. The index began the day on a strong note, opening at 3407.78, up 12.24 points (0.36%) compared to its prior close of 3395.54. Intraday trading showcased even greater enthusiasm, with the benchmark briefly surpassing the 3420 mark before settling at its closing value.

The rally began earlier in the week, marking a sharp departure from previous records. On October 10, the KOSPI closed at 3314.53, obliterating its July 6, 2021 high of 3305.21. As trading advanced, the index continued breaking barriers, culminating in this latest streak of historic closes on October 15.

The Key Drivers: Individual and Foreign Investors Lead the Charge

The ongoing bull run in the KOSPI has been primarily fueled by active participation from retail and foreign investors. During the latest session, individuals purchased a net total of ₩748 billion worth of shares, while foreign investors added ₩1.42 trillion to their portfolios. On the other hand, institutional investors acted as a counterweight, offloading ₩2.03 trillion in stocks.

Jae-Won Lee, a research analyst at Shinhan Investment Corp., noted that the surge is tied significantly to positive sentiment surrounding domestic policies. “The Deputy Prime Minister’s decision to retain the capital gains tax threshold for major shareholders at ₩5 billion, coupled with growing expectations for deregulation in emerging industries, has spurred market optimism,” Lee explained.

Nevertheless, Lee tempered the outlook by highlighting persisting global risks. “There are lingering concerns about tariffs and potential interest rate hikes by the U.S. Federal Reserve that could impact investor confidence moving forward,” he added.

Sector Performance: Policymakers and Semiconductors Shine

Examining sector-level contributions reveals a mixed performance among top-cap stocks. Semiconductor giants Samsung Electronics and SK Hynix led the gains, climbing 1.46% and 0.76%, respectively, with both reaching record-breaking highs. These advances underscore the pivotal role of semiconductor stocks in propelling the index to new heights.

However, the automotive sector struggled. Hyundai Motor and Kia Motors saw sharp declines of 3.80% and 3.97%, respectively, bucking the upward trend in the broader market. LG Energy Solution remained flat, reflecting stable trading dynamics amidst sector-specific volatility.

“Semiconductor heavyweights continue to play an instrumental role in driving the index higher, underscoring the significance of tech-driven industries in today’s market,” Lee commented further.

KOSDAQ Mirrors Gains: Retail Investors Dominate Trading

The tech-heavy KOSDAQ also participated in the upswing, closing at 852.69—an increase of 5.61 points (0.66%) from the prior session. Starting the day at 849.64, up 2.56 points (0.30%), the index steadily extended its gains through continued buying activity.

Retail investors were decisive in pushing the KOSDAQ higher, net purchasing ₩2.11 trillion worth of shares during the session. In contrast, foreign and institutional investors acted as sellers, offloading ₩852 billion and ₩531 billion, respectively.

Performance among individual KOSDAQ stocks remained mixed, indicative of diverging trends within this growth-focused market. Companies like EcoProBM and EcoPro posted gains of 1.26% and 0.92%, respectively. Meanwhile, PharmResearch fell 2.48%, and ABL Bio saw a 1.04% decline. Alteogen’s shares held steady with no change in price.

Foreign Exchange Developments: Korean Won Weakens Slightly

Beyond equities, the foreign exchange market witnessed marginal fluctuations as the Korean won weakened slightly against the U.S. dollar. Closing at ₩1389.0 per dollar, Wednesday’s exchange rate marked an increase of ₩0.8 compared to the previous day’s ₩1388.2 close.

This movement reflects broader trends in currency markets, which are influenced by global economic factors and investor sentiment.

Conclusion: KOSPI Maintains Bullish Momentum

The KOSPI’s historic rally demonstrates unprecedented confidence in South Korea’s equity market, highlighting the significance of semiconductor growth, positive policy developments, and investor enthusiasm. Despite looming external risks such as tariff concerns and rate hikes in the U.S., the sustained upward movement cements the KOSPI’s position as a standout performer on the global stage.

As continued buying from retail and foreign investors propels both KOSPI and KOSDAQ indices forward, market watchers globally are keeping a close eye on South Korea’s economic policies and sector-level trends to assess the long-term direction of these record-breaking gains.