This week (March 24-28), domestic political uncertainty is expected to reach its peak. The Constitutional Court will decide on the impeachment of Prime Minister Han Duck-soo on the 24th. Earlier, Prime Minister Han will receive a judgment from the Constitutional Court before President Yoon Suk-yeol, who was referred to the impeachment trial.
Therefore, predictions suggest that the impeachment ruling against President Yoon could take place as early as later this week (after the 26th). The Constitutional Court has been conducting deliberations on the impeachment ruling of President Yoon for the longest period.
Experts advise paying attention to the increasing volatility of the stock market due to political factors. Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, "In particular, we need to be mindful of volatility later this week, as the delay in notifying the date of the presidential impeachment ruling is prolonging the resolution of political risk." However, he also stated that if short-term uncertainties are resolved, the domestic stock market could bounce back.
Last week (March 17-21), the domestic stock market rose due to foreign net buying. The KOSPI index, which started at 2610.69 on the 17th, exceeded 2640, rising for five consecutive trading days by the 21st.
This stands in contrast to the U.S. stock market, which fluctuated due to tariff uncertainties and recession concerns. Earlier, the Federal Open Market Committee (FOMC) lowered the economic growth forecast for this year in its Summary of Economic Projections (SEP) while raising the inflation forecast. Concerns about stagflation, where inflation and recession occur simultaneously, have emerged.
In contrast, the domestic stock market saw improved investor sentiment as foreign net buying flowed into the semiconductor sector led by Samsung Electronics. Expectations that the memory semiconductor market will improve led Samsung Electronics to recover to the 60,000 won range for the first time in five months.
In the securities industry, projections suggest that while the domestic stock market may experience adjustments in the short term due to domestic and international risks, it is expected to rebound afterward. There is a positive sentiment towards the flow of foreign investment into the semiconductor sector, which represents the domestic industry.
Lee Kyung-min, a researcher, analyzed, "Political risks and the resumption of short selling may impact short-term uncertainties, but I view them as variables that could improve foreign demand afterward. Additionally, the volatility stemming from impending tariffs is also likely to show strong rebound momentum after a short-term adjustment due to market learning effects."
Lee Sang-jun, a researcher at NH Investment & Securities, explained, "After the tariff concerns raised by President Trump have passed their peak, positive factors awaiting to affect stock prices include the tax cuts in the U.S. and the resolution of uncertainties within Korean politics, along with future economic stimulus packages. If stock price adjustments occur due to mutual tariff concerns, it is advisable to approach it from a buying perspective."
However, the issue of the U.S.-initiated tariff war, which continues to affect the global economy, must be continually monitored. U.S. President Donald Trump has indicated that he will announce mutual tariff rates by country on the 2nd of next month. Uncertainties may increase until the specifics of the mutual tariffs are clarified.
This week, a series of shareholders' meetings will also be held by domestic corporations. Hanwha Aerospace, which announced a drastic capital increase, will hold its meeting on the 25th; Naver, Kakao, and HD Hyundai Heavy Industries will hold theirs on the 26th; and SK hynix and Lunit will hold theirs on the 27th. On that day, Hanwha Aerospace is expected to persuade shareholders.
Additionally, starting this week, transactions in domestic stocks will be available for longer periods. Beginning on the 24th, the number of tradable stocks on the Alternative Trading System (ATS) Next Trade will expand to 350. Next Trade has gradually increased the number of stocks to ensure market stability.
From this day, large stocks such as Samsung Electronics and SK hynix, along with KOSDAQ representatives like Alteogen, Ecopro, and Rainbow Robotics, can also be traded. On Next Trade, stocks can be traded in the same manner as regular market hours for a total of 12 hours, from 8 a.m. to 8 p.m.