The KOSPI market recorded 8.21 trillion won, and the KOSDAQ market recorded 4.58 trillion won. These figures are based on the transaction amount reported by the Korea Exchange as of the 22nd. Both fell short of the average daily transaction amount this month, indicating heightened caution in the market.
At 11 p.m. Korean time, Jerome Powell, chair of the U.S. Federal Reserve, is set to deliver his final Jackson Hole meeting speech during his term. The market is watching to see if he provides any hints regarding the direction of currency policy in his address.
There is another variable. U.S. President Donald Trump unexpectedly announced a 'presentation' in the Oval Office two hours after Powell's speech.
The caution in the market was clearly reflected in the graphs of the KOSPI and KOSDAQ indices. The KOSPI index closed at 3168.73, up 26.99 points (0.86%) from the previous day. It rose as high as 3181.95 during the day but had to give back some of the gains. In the KOSPI market, foreign and institutional investors showed a buying advantage, purchasing 170.2 billion won and 158.8 billion won, respectively. Individuals sold a net amount of 446.2 billion won.
The KOSDAQ index closed at 782.51, up 5.27 points (0.68%) from the previous day. The KOSDAQ index also rebounded to 785.55 during the day but weakened to 778.73. In the afternoon, the leading stock Alteogen surged, allowing it to regain the 780 level. In the KOSDAQ market, only foreign investors had a buying advantage of 44 billion won. Individuals and institutions sold a net amount of 28.6 billion won and 7.3 billion won, respectively.
Attention has shifted to sectors expected to benefit from the South Korea-U.S. summit set for the 25th in Washington, D.C.
Semiconductors like Samsung Electronics and SK hynix; shipbuilding companies like HD Hyundai Heavy Industries and Hanwha Ocean; and nuclear power sector representatives like Doosan Enerbility and KEPCO are prominent.
Lee Kyung-min, a researcher at Daishin Securities, noted, "Expectations for the South Korea-U.S. summit have provided momentum to the KOSPI index, especially with the inclusion of major corporate leaders in the economic delegation, such as Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry; Lee Jae-yong, chairman of Samsung Electronics; Koo Kwang-mo, chairman of LG; Kim Dong-kwan, vice chairman of Hanwha; and Park Ji-won, chairman of Doosan Enerbility, suggesting that substantial cooperation discussions in the semiconductor, shipbuilding, and nuclear power sectors are anticipated."
Defense sectors, which had shown weakness due to the possibility of a ceasefire in the Russia-Ukraine war, rebounded as low-price buying pressure came in. The stock prices of Hanwha Aerospace and LIG Nex1 significantly increased.
With President Trump stating he would expand investments in power infrastructure, stocks related to HD Hyundai Electric, LS ELECTRIC, and Hyosung Heavy Industries also showed strength.
However, concerns are emerging regarding the direction of the KOSPI index after the South Korea-U.S. summit. Park Seung-young, a researcher at Hanwha Investment & Securities, mentioned the potential impact of follow-up policies related to shipbuilding, defense, and nuclear power; conservative dividend policies in anticipation of separate taxation on dividend income; and the challenges of achieving surprise results for the third quarter (July to September). He suggested that the possibility is growing that the KOSPI index's record high of 3254 set on July 30 could be the peak.
Park added, "The application of separate taxation on dividend income being delayed by one year has led to a more conservative viewpoint on the domestic stock market, and it is expected to show a state of calm until the end of the year." He continued, "Given that this year's adjustments enhance the potential for a rise in 2026, it is necessary to maintain an optimistic outlook in the medium term."