Summary
- Foreigners posted net purchases of KRW 854.6bn on the KOSDAQ, lifting the index 19.86% over the past month.
- Foreign buying has remained broad-based across top KOSDAQ names by market cap, including EcoPro.
- Brokerages said the KOSDAQ could climb to 1,400 points on the back of the government’s KOSDAQ revitalization policies.
The KOSDAQ Index surged on the 19th, buoyed by concentrated buying from foreign investors. The rally is seen as foreign demand translating expectations surrounding the government’s policy push to revitalize the KOSDAQ market into actual flows.
According to the Korea Exchange, the KOSDAQ Index closed at 1,160.71, up 4.94% on the day—outpacing the KOSPI’s gain of 3.09%. As the advance broadened intraday, a buy-side circuit breaker was triggered at 10:41 a.m. The KOSDAQ has risen 19.86% over the past month. Its three-month return stands at 33.21%.
Foreigners posted net purchases of KRW 854.6bn worth of shares on the KOSDAQ market. The figure came close to the all-time single-day record of KRW 881.7bn set on July 26, 2023. Institutions also registered net buying of KRW 1.0429tn, though a substantial portion is estimated to reflect retail purchases via exchange-traded funds (ETFs).
Foreign investors showed broad-based buying across top KOSDAQ names by market capitalization. They bought KRW 122.7bn worth of EcoPro, the largest net purchase, and also added HPSP (KRW 28.8bn), Techwing (KRW 26.3bn), POSCO Future M (KRW 26.3bn) and Samchundang Pharm (KRW 25.4bn), among others.
Foreign investors have maintained aggressive buying in South Korea’s KOSDAQ market since the start of the year. They have net bought KRW 415.1bn of EcoPro and KRW 306.0bn of EcoPro BM, followed by Samchundang Pharm (KRW 269.5bn), L&C Bio (KRW 265.6bn) and HPSP (KRW 111.0bn).
Brokerages are also ramping up expectations for a policy-driven KOSDAQ boost. LS Securities said the government’s current policy stance resembles that of the Moon Jae-in administration, which rolled out measures such as the “KOSDAQ Venture Fund” in 2018, and projected the KOSDAQ could rise to 1,400 points on a policy premium.
The government recently announced a “drive to restore trust in and revitalize the KOSDAQ market,” moving to push forward full-scale measures. In line with this, the Financial Services Commission on the 12th unveiled a delisting reform plan and said it would move, via the Korea Exchange, to remove underperforming firms that have accumulated in the KOSDAQ market over an extended period.
Jeon Beom-jin forward@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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