KOREA MARKET CLOSE

Korea Market Close: Chip Rally Lifts KOSPI 3.76%

Foreign buying, a semiconductor rebound and a firmer won reinforced risk appetite, though futures positioning remained less supportive.

Report cut-off Korean equities and USD/KRW Overseas markets

1. Closing view

Strong risk-on

Foreign buying in large-cap semiconductors, program inflows, won strength and broad participation all pointed to a forceful rebound. Foreign selling in index futures and wide intraday ranges nevertheless argue against declaring positioning fully stabilized.

2. Key takeaways

  • The KOSPI closed at 6,598.26 (+3.76%) and the KOSDAQ at 799.59 (+2.42%) on Aug. 5.
  • The KOSPI 200 gained 3.86% and the September KOSPI 200 futures contract rose 4.21%, confirming the large-cap rebound.
  • Foreign investors bought a net KRW 1.4463tn of KOSPI cash equities, while KOSPI program trading posted a KRW 702.7bn net inflow.
  • Advancers totaled 675 on the KOSPI and 1,346 on the KOSDAQ, aligning market breadth with index direction.
  • Samsung Electronics rose 2.50%, SK hynix 5.77% and Samsung Electro-Mechanics 14.43%.
  • Day-session USD/KRW fell KRW 8.0 to 1,424.5 per dollar, consistent with foreign cash-equity inflows.
  • The prior U.S. SOX gain of 6.55%, lower oil and broad Asian gains formed a supportive external backdrop.

3. Indexes and market breadth

KOSPI6,598.26+239.31 (+3.76%)
Open
6,603.48
High
6,674.66
Low
6,540.27
Volume
335,164k shares
Turnover
KRW 25,212,870mn
Status
Closed

Aug. 5, 2026, 15:30 KST; index points, thousand shares and KRW mn; KRX data via Npay, close marked final; source; checked 16:43 KST.

KOSDAQ799.59+18.87 (+2.42%)
Open
794.93
High
803.49
Low
783.32
Volume
582,881k shares
Turnover
KRW 6,341,798mn
Status
Closed

Aug. 5, 2026, 15:30 KST; index points, thousand shares and KRW mn; KRX data via Npay, close marked final; source; checked 16:43 KST.

KOSPI 2001,038.59+38.56 (+3.86%)
Open
1,042.40
High
1,053.19
Low
1,029.11
Volume
147,022k shares
Turnover
KRW 22,261,709mn
Status
Closed

Aug. 5, 2026, 15:30 KST; index points, thousand shares and KRW mn; KRX data via Npay, close marked final; source; checked 16:43 KST.

KOSPI 200 futures Sep. 20261,042.05+42.05 (+4.21%)
Open
1,054.70
High
1,055.40
Low
1,031.75
Volume
111,509 contracts
Value
KRW 29,144,936mn
Status
20-min delay

Aug. 5, 2026 close; points, contracts and KRW mn; KRX data via Npay with a 20-minute delay; source; checked 16:43 KST.

Market breadth and limit-up/limit-down counts
MarketUpUnchangedDownLimit upLimit downReading
KOSPI6754319700Advancers outnumbered decliners 3.4 to 1
KOSDAQ1,34678301110Broad participation confirmed the index gain

Common basis: Aug. 5, 2026, 15:30 KST; stock counts; KRX data via Npay KOSPI and KOSDAQ; checked 16:43 KST. Limit-up names are included in advancers and limit-down names in decliners.

KOSPI 200 breadth was also positive at 140 gainers, six unchanged and 53 decliners, showing that participation extended beyond a handful of chip names.

4. Intraday timeline and turning points

  1. Gap higher after the U.S. AI and semiconductor rallyThe KOSPI opened at 6,603.48 and the KOSDAQ at 794.93, roughly 3.85% and 1.82% above their prior closes.
  2. Upside reached 6,674.66 on the KOSPI and 803.49 on the KOSDAQSemiconductors and electronic components led. No minute-level high was assigned without a verified timestamp.
  3. Profit-taking coexisted with wide intraday rangesThe session lows were 6,540.27 and 783.32. Public data did not establish the exact sequence or timing of the highs and lows.
  4. Foreign cash and program inflows supported the marketNet foreign KOSPI buying exceeded KRW 1.4tn, while gains broadened across electronics, electrical equipment and communications equipment.
  5. Both benchmarks finished firmly higherThe KOSPI gained 3.76% and the KOSDAQ 2.42%. Retail demand and broad breadth kept the KOSDAQ higher despite foreign and institutional selling.

5. Foreign, institutional and retail flows

Cash-equity net buying (KRW 100mn)
MarketRetailForeignInstitutionsReading
KOSPI-11,834+14,463-2,838Foreign investors were the main large-cap buyers
KOSDAQ+3,949-2,980-1,107Retail absorbed foreign and institutional selling
KOSPI 200-11,108+14,485-3,541Foreign demand was concentrated in large caps

Common basis: Aug. 5, 2026, 15:30 KST; KRW 100mn; KRX data via Npay KOSPI, KOSDAQ and KOSPI 200; checked 16:43 KST. Where desktop and mobile differed by KRW 100mn, the desktop display is used.

Program trading and futures flows (KRW 100mn)
CategoryRetail/arbitrageForeign/non-arbitrageInstitutions/totalReading
KOSPI program+63+6,964+7,027Non-arbitrage buying dominated
KOSDAQ program+11-2,618-2,607Program flows diverged from the index gain
KOSPI 200 futures+431-3,521+2,415Foreign cash buying conflicted with futures selling

Common basis: Aug. 5, 2026 close; KRW 100mn; KRX data via Npay KOSPI, KOSDAQ and futures; checked 16:43 KST. The three displayed futures groups exclude other participants, so they need not sum to zero.

6. Leading and lagging sectors; key stocks

Sector performance at the close
GroupSectorChangeUp/flat/downReading
LeaderElectronic equipment and instruments+12.63%90/6/10Samsung Electro-Mechanics and component suppliers led
LeaderElectrical equipment+9.08%31/1/3Broad strength in equipment and power names
LeaderCommunications equipment+8.84%46/6/3AI-infrastructure expectations moved in tandem
LeaderSemiconductors and equipment+4.09%158/5/8Moved with the U.S. SOX rally
LaggardGame entertainment-3.02%7/4/23Clear underperformance in a rising market
LaggardHome appliances / department stores / beverages-1.02% to -0.94%MixedLagged technology and capital-goods sectors

Common basis: Aug. 5, 2026 close; Npay sector taxonomy; source; checked 16:43 KST. Sector moves and headlines are treated as co-movement, not verified causality.

Large-cap and leading stocks at the close (prices in KRW)
MarketStocksCloseChangeMarket relevance
KOSPISamsung Electronics / SK hynix246,000/1,668,000+2.50%/+5.77%Large-cap chips led the rebound
KOSPISamsung Electro-Mechanics / Samsung C&T1,356,000/347,500+14.43%/+7.75%Strength broadened to components and holding companies
KOSDAQAlteogen / Rainbow Robotics277,000/484,000+3.75%/+3.64%Biotech and robotics supported the index
KOSDAQEcoPro / EcoPro BM82,300/101,700+0.37%/-0.78%Battery names were mixed relative to the index

Common basis: Aug. 5, 2026, 15:30 KST; closing prices in KRW; KRX data via Npay KOSPI and KOSDAQ; checked 16:43 KST.

Turnover: Samsung Electronics showed about KRW 5.5774tn in turnover, while leveraged and inverse ETFs also attracted heavy trading. A same-basis official ranking of all individual stocks was not obtained.

7. Corporate and policy events

Confirmed fact

Tighter single-stock leveraged ETF rules took effect

From Aug. 5, the minimum deposit for retail investors in single-stock leveraged ETFs rose to KRW 30mn from KRW 10mn. New listings are also restricted until market conditions stabilize.

Reuters report
Confirmed fact

July FOMC held rates at 3.50%-3.75%

The Fed kept rates unchanged on July 29; three voters preferred a 25bp increase, leaving inflation and energy-shock risks in focus.

Federal Reserve releases
Confirmed fact

U.S. AI and semiconductor stocks surged

Micron gained 7.6%, Broadcom 6.6% and Nvidia 2.6%, while the SOX closed 6.55% higher.

AP
Verification limit

No single filing established as the cause of sector gains

A priority search of DART and company IR materials did not verify a new disclosure that directly explained the day’s sharp move in Samsung Electro-Mechanics or the broader leading groups.

DART
Market interpretation: The ETF rules should reduce leverage at the margin, but the day’s rally moved more directly with U.S. semiconductor gains, foreign cash buying and relief in oil and FX. The policy change is not presented as the cause of the advance.

8. Overseas operations and international market reaction

Overseas signals and potential Korean corporate linkages
External signalVerified valueStatusKorean exposureInterpretationSource
U.S. memory and AIMU +7.6% AVGO +6.6% NVDA +2.6%Aug. 4 closeSamsung Electronics and SK hynix; HBM, DRAM and foundryGlobal AI risk appetite moved with Korean large-cap chipsAP
Japanese and Taiwanese chipsNikkei +3.7% Taiwan +2.9%Aug. 5 closeSemiconductor equipment and electronic componentsRegional technology risk-on confirmed the broader moveAP
Hormuz reopening hopesBrent $79.36Aug. 4 closeAirlines, chemicals and transport costs; refining and shipbuilding marginsLower oil eases costs but has mixed implications for energy namesAP

Checked: Aug. 5, 2026, 16:43 KST. These links are business-exposure and price co-movement analysis; companies did not officially identify them as the sole cause of the day’s share-price moves.

9. USD/KRW and JPY/KRW

Foreign-exchange summary
PairValueChangeBasisSourceIndustry implications
USD/KRWKRW 1,424.5-KRW 8.0Aug. 5, 2026, 15:30 KST day-session close; KRW per USDSeoul FX close report / NpayA firmer won helps import costs and foreign return translation but can weigh on exporters’ KRW-reported revenue
JPY/KRWKRW 904.05-KRW 3.05Hana Bank reference rate at 16:26 KST; KRW per JPY 100Hana Bank / NpayWon strength versus yen can pressure auto and machinery pricing; it favors outbound Japan travel, with mixed tourism and duty-free effects

Checked: Aug. 5, 2026, 16:43 KST. JPY/KRW is a direct Hana Bank reference rate, not a 15:30 Seoul-market close. No cross-rate was calculated from mismatched timestamps.

Signal alignment: Lower USD/KRW and foreign KOSPI cash buying pointed in the same risk-on direction. Foreign futures selling means FX, cash and derivatives were not fully aligned.

10. U.S., Asian, futures, oil and rates linkages

Global market dashboard
GroupIndicatorsValuesChangeData basisKorean-market linkage
U.S. equitiesDow / S&P 500 / Nasdaq / SOX54,085.88 7,736.52 26,584.99 12,179.26+1.71% +1.79% +2.59% +6.55%Aug. 4, 2026 local closes; index pointsAI and semiconductor risk appetite can transmit to Korean large caps
U.S. Treasuries2-year / 10-year2-year unverified 10-year 4.62%unverified / -8bpAug. 4 New York session; AP for 10-yearLower long yields ease growth-stock discount-rate pressure
Federal ReserveFed funds target3.50%-3.75%Held July 29July 29, 2026 FOMC decisionA hold with three hike dissents caps valuation upside
Commodities and dollarWTI / Brent / DXY$75.77 $79.36 99.73-$4.57 -5.3% -0.05Aug. 4 NYMEX/international closesLower oil and dollar are favorable for Korean import prices and the won
AsiaNikkei / Shanghai / Hang Seng66,300.44 3,874.40 25,951.68+3.7% +1.4% +0.4%Aug. 5, 2026 closesRegional risk-on externally confirmed Korea’s rebound
U.S. futuresDow / S&P 500 / Nasdaq 100Synchronized quotes unverifiedUnverifiedQueried Aug. 5 at 16:43 KSTNot presented as closes; retained as a next-U.S.-session watchpoint

Source mapping and check time: Npay for the Dow, S&P 500, Nasdaq and SOX; AP for the 10-year yield, Brent and Asian indexes; Federal Reserve for the FOMC; Npay market indicators for WTI and DXY. Checked Aug. 5, 2026, 16:43 KST. Reliable same-time U.S. futures quotes were not obtained.

11. Next-session watchlist

  1. Foreign cash versus futures: whether KRW 1.4463tn of KOSPI cash buying and KRW 352.1bn of futures selling converge.
  2. Semiconductor follow-through: whether Samsung Electronics and SK hynix extend gains after the next U.S. session.
  3. USD/KRW in the 1,420s: whether won strength continues to accompany foreign inflows.
  4. Breadth: whether strength spreads beyond electronics into biotech, consumption and games.
  5. Leveraged ETF rules: whether the higher deposit threshold reduces turnover and cash-futures basis volatility.
  6. Oil and Hormuz talks: whether lower crude continues to ease airline and chemical input costs.

12. Risks and data limitations

Data not verified or excluded
  • Official final confirmation was not obtained for VI events, sidecars, circuit breakers, individual trading halts, block trades, short-selling spikes, margin liquidation, leveraged-product liquidation or unusual closing-auction activity. Unverified does not mean absent.
  • Exact timestamps and sequencing for intraday highs, lows and turning points were not verified, so none were invented.
  • JPY/KRW is the 16:26 KST Hana Bank direct reference rate, not a 15:30 Seoul-market close.
  • The U.S. 2-year Treasury yield and synchronized Dow, S&P 500 and Nasdaq 100 futures quotes at 16:43 KST were not obtained.
  • DART and company IR searches did not establish a single new filing as the cause of the leading stocks’ gains.
  • Some Npay desktop and mobile flow displays differed by KRW 100mn; the desktop figure is used and the difference disclosed.
Causality caution: U.S. semiconductor stocks, oil, FX and Korean equities moved in mutually supportive directions, but neither companies nor the exchange identified a single official cause. The report therefore uses “co-movement,” “possible linkage” and “market interpretation.”

13. Overall assessment

Market temperatureStrong risk-on
Market quality4/5
Flow durabilityMedium
VolatilityHigh

Character of the move

The rebound combined global AI and chip strength, lower oil and dollar pressure, foreign large-cap buying and position rebuilding after sharp losses. It was a global, FX and flow-driven recovery rather than a move explained by one newly confirmed earnings upgrade.

Concentration versus diffusion

Samsung Electronics, SK hynix and Samsung Electro-Mechanics provided substantial index support, but breadth and strength in electrical equipment, communications equipment, construction and machinery showed meaningful diffusion.

Signal alignment

Foreign KOSPI and program buying aligned with lower USD/KRW. Foreign futures selling and foreign and institutional KOSDAQ selling prevented full alignment across markets.

Conditions for continuation or failure

Continuation requires U.S. chip resilience, stable USD/KRW, sustained foreign cash inflows and broad participation. More futures selling, renewed oil gains, won weakness or breadth narrowing to two chip stocks would damage the rebound’s quality.

Data date: Aug. 5, 2026 · Korean equities and USD/KRW 15:30 KST · JPY/KRW 16:26 KST · overseas check 16:43 KST

This material is provided for informational purposes only and does not constitute investment advice.