SK hynix up 5%... KOSPI index reclaims 4,000 level

The KOSPI index is showing gains of more than 3%. Buying pressure has flowed in as the likelihood of a U.S. government shutdown ending has increased and the government has moved to ease separate taxation on dividend income.

On the 10th, according to the Korea Exchange, around 2:50 p.m. the KOSPI index was up 3.25% at 4,082.45. Individual investors are net selling KRW 1.1729 trillion worth, foreigners are selling KRW 36.9 billion worth, and institutions are net buying KRW 1.2256 trillion worth, driving the index.

Most of the large-cap stocks are widening their gains, including Samsung Electronics (3.06%), SK hynix (5.34%) and Hanwha Aerospace (4.66%). Among securities stocks, Sangsangin Securities is up 10.26%. NH Investment & Securities (9.88%), Shinyoung Securities (9.26%), Kiwoom Securities (8.53%), Eugene Investment & Securities (8.83%) and SK Securities (7.40%) are also rising. At the same time, Hana Financial Group (5.43%), KB Financial Group (5.17%), iM Financial Group (5.10%) and BNK Financial Group (4.90%) are noticeably higher.

The KOSDAQ index is trading up 1.33% at 888.43. Foreigners are net selling KRW 44.7 billion worth. Institutions and individuals are buying KRW 37.7 billion and KRW 6.9 billion worth, respectively. Among the large-cap KOSDAQ stocks, EcoPro BM (2.05%), HLB (3.05%), Kolon TissueGene (7.01%) and EO Technics (6.87%) are showing gains.

Recently, the government and the ruling party have been moving toward easing the top rate of separate taxation on dividend income from the government’s original proposal of 35%. It is reported that there is a consensus to lower it to 25%, as argued by some members of the Democratic Party. Expectations are rising that banks and other financial stocks, which are representative high-dividend stocks, will benefit.

The fact that the U.S. shutdown is effectively ending is also acting as a positive factor for the market. On the 9th (local time), according to major outlets such as Bloomberg and CNN, the U.S. Senate held a procedural vote, the first step to pass a short-term spending bill, and it passed with 60 votes in favor and 40 against. If the bill passes the Senate plenary session and is approved by the House and signed by President Donald Trump, the shutdown—which was the longest in U.S. history—will officially end.

In addition, the U.S.-China reciprocal tariff dispute has been postponed for one year, raising expectations. At 00:01 (U.S. Eastern Time; 2:01 p.m. KST) the same day, the U.S. lowered the so-called "fentanyl tariff" on Chinese-made products imposed this year from 20% to 10%. As a result, the Trump administration’s average tariffs on China fell from 57% to 47%.

Lee Kyung-min, a researcher at Daishin Securities, said, "With the U.S. shutdown nearing an end and expectations for expanded shareholder returns, securities, insurance and holding companies are leading the index rise," adding, "As the political sphere strengthens a policy stance to stimulate the stock market through shareholder returns, expectations are growing for additional measures such as mandatory cancellation of treasury shares following separate taxation on dividend income."

A-ra Jo rrang123@hankyung.com