On the 27th, the KOSPI index broke through the 5,080 level, achieving "five-thousand-pi" on a closing basis as well. It is the first time in the history of Korea's stock market that the KOSPI has closed above 5,000 points. The KOSDAQ index also rose nearly 2% and ended trading around the 1,080 level. It is the highest level in 25 years since the bursting of the IT bubble in 2000.
As foreigners showed net buying on the main board, individual funds flowed en masse into the main board and the KOSDAQ via exchange-traded funds (ETFs). Large-cap stocks repeatedly hit record highs. Samsung Electronics was on the verge of 160,000 won, and SK hynix rose to 800,000 won.
The KOSPI closed at 5,084.85, up 35.26 points (2.73%) from the previous trading day. After opening lower and showing jitters, the KOSPI slid to 4,890.72 early in the session, then rebounded sharply on the back of foreign and institutional "buy" momentum.
On the day, foreign and institutional investors were net buyers on the main board to the tune of 851.4 billion won and 238.4 billion won, respectively. Only individuals sold, unloading 1.0231 trillion won worth of shares.
Strength in large-cap semiconductor stocks stood out. Samsung Electronics jumped nearly 5%, approaching 160,000 won, and SK hynix surged 8.70%. SK Square (7.26%), KB Financial (5.54%), and Doosan Enerbility (1.96%) also rose.
What rattled the KOSPI early in the session was U.S. President Donald Trump's remarks on restoring tariffs. Overnight, President Trump said, "The Korean National Assembly has not carried out the legal procedures required to implement the trade agreement between the United States and Korea," and said he would raise tariffs on Korean products back to the pre-trade-agreement level. Investor sentiment appeared to freeze rapidly in response.
Amid concerns that auto tariffs would rise from 15% to 25%, Kia and Hyundai Motor fell 1.10% and 0.81%, respectively, at the close. However, declines were not as steep as expected on securities industry projections that President Trump could again show a "TACO (Trump Always Chickens Out)" trade.
The KOSDAQ index also turned higher after showing a nearly 1% decline early in the session, and finished trading at 1,082.59, up 18.18 points (1.71%) from the previous trading day. While the KOSDAQ has occasionally crossed 1,000 points, the index has recently been surging and appears to be settling above the 1,000 level.
The funds that lifted the KOSDAQ index were individual funds. Institutions posted heavy net purchases of 1.6521 trillion won, but most of that came from securities firms (1.5038 trillion won), which are presumed to be individual money. When individuals buy exchange-traded funds (ETFs), liquidity providers (LPs) purchase the ETF's constituent stocks in the market during the creation/redemption process, and these amounts are recorded as securities firm flows. Foreigners net sold 110.4 billion won.
Top KOSDAQ market-cap stocks lit up in unison. LEENO Industrial surged more than 10%, and Sam Chun Dang Pharm (6.39%), EcoPro (6.30%), HLB (5.07%), Kolon TissueGene (4.69%), LigaChem Biosciences (3.93%), Peptron (2.50%), EcoPro BM (2.15%), ABL Bio (1.04%), and Alteogen (0.49%) were strong. Among stocks within the top 10 by market cap, only Rainbow Robotics fell, down 4.27%.
Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "The KOSPI looks accustomed to TACO despite tariff comments from President Trump," adding, "Sectors with earnings momentum (upside potential) such as SK hynix, power machinery, and nuclear power rose on the day."