[2026.05/25~05/29] Korea Stock Market Weekly Review | KOSPI Hits Record 8,476 as KOSDAQ Plunges 9.6% in K-Shaped Divergence
📊 This Week at a Glance
The Korean equity market saw an extreme "K-shaped divergence" this week (May 25–May 29), with the KOSPI and KOSDAQ moving in completely opposite directions. The KOSPI surged to a fresh all-time high on optimism over US–Iran ceasefire negotiations and the National Pension Service's decision to raise its domestic equity allocation, led by large-cap semiconductors. Meanwhile, the KOSDAQ slid for three straight sessions as liquidity rotated into large caps.
| Index | Weekly Open | Weekly High | Weekly Low | Weekly Close | Weekly Change | Weekly Volume |
|---|---|---|---|---|---|---|
| KOSPI | 8,070.91 | 8,476.15 | 7,841.01 | 8,476.15 | +5.02% | 254,307.9만 |
| KOSDAQ | 1,189.28 | 1,205.12 | 1,058.13 | 1,074.80 | -9.63% | 424,892.4만 |
The KOSPI rallied +5.02% over the week to settle at a record closing high of 8,476.15. In sharp contrast, the KOSDAQ tumbled -9.63% to the 1,074 level, leaving the two benchmarks pointing in starkly opposite directions.
📅 Daily Performance
Here is the day-by-day breakdown of KOSPI and KOSDAQ closes and returns this week.
| Date | KOSPI Close | KOSPI Change | KOSDAQ Close | KOSDAQ Change |
|---|---|---|---|---|
| Tue 5/26 | 8,047.51 | +2.55% | 1,172.52 | +0.98% |
| Wed 5/27 | 8,228.70 | +2.25% | 1,133.13 | -3.36% |
| Thu 5/28 | 8,185.29 | -0.53% | 1,104.36 | -2.54% |
| Fri 5/29 | 8,476.15 | +3.55% | 1,074.80 | -2.68% |
The KOSPI climbed firmly on Tuesday (+2.55%) and Wednesday (+2.25%), approaching the 8,400 mark for the first time. It briefly retreated on Thursday (-0.53%) amid US–Iran clash fears, before surging +3.55% on Friday on ceasefire-progress hopes to complete its record high. The KOSDAQ, by contrast, edged up on Tuesday (+0.98%) but then fell for three consecutive sessions (-3.36%, -2.54%, -2.68%).
📈 KOSPI Weekly Analysis
The KOSPI opened the week at 8,047.51 (5/26) and rose to 8,228.70 on 5/27, testing the 8,400 level for the first time. It pulled back to 8,185.29 on 5/28 as US–Iran clash worries surfaced, but rebounded sharply with a +3.55% jump on 5/29 to close at a record 8,476.15. For the week, it advanced +5.02% from 8,070.91 to 8,476.15, a powerful recovery from the weekly low of 7,841.01.
The rally was concentrated in large-cap semiconductors—Samsung Electronics and SK Hynix (the so-called "Samsung-nix" duo)—and LG Group affiliates. On Friday, institutions net-bought roughly KRW 2.3 trillion, driving the index to its record. Expectations of stabilizing US inflation, combined with the National Pension Service's decision to expand its domestic equity weighting, simultaneously boosted supply-demand dynamics and investor sentiment. Weekly trading volume reached approximately 254,307.9만 shares.
📉 KOSDAQ Weekly Analysis
The KOSDAQ moved in the opposite direction, trading weak throughout. After a modest +0.98% gain on 5/26 to 1,172.52, it slid for three straight sessions (-3.36%, -2.54%, -2.68%) to close at 1,074.80, posting a weekly loss of -9.63%. The decline from the weekly high of 1,205.12 to the low of 1,058.13 was severe.
As market liquidity rotated into large-cap, semiconductor-heavy KOSPI names, small- and mid-cap growth stocks were left behind—a textbook "K-shaped polarization." The most notable feature of the week was that the warmth of the KOSPI's record-breaking rally failed to spread to the KOSDAQ. Weekly trading volume was around 424,892.4만 shares.
🔥 Weekly Themes & Sectors
Weekly gains were concentrated in IT and electronics. The top weekly sector performers were as follows.
| Sector | Weekly Change |
|---|---|
| Electronic Products | +29.19% |
| IT Services | +17.25% |
| Electronic Equipment & Instruments | +14.27% |
| Display Panels | +10.84% |
| Interactive Media & Services | +10.61% |
| Life Insurance | +7.85% |
The key themes of the week can be summarized as follows.
- Large-Cap Semiconductors ("Samsung-nix") ▲ Up: A semiconductor rally led by Samsung Electronics and SK Hynix powered the KOSPI's record high. IT hardware sectors—Electronic Products (+29.19%), Electronic Equipment & Instruments (+14.27%), and Display Panels (+10.84%)—dominated the weekly gainers.
- LG Group Stocks ▲ Up: LG Electronics and LG CNS hit their daily upper limits, while Samsung Electro-Mechanics (pref., limit-up), LG Innotek, LG Corp., and the TIGER LG Group Plus ETF all rallied, reflecting broad strength across the group alongside the IT Services (+17.25%) sector's outperformance.
- US–Iran Ceasefire Momentum ▲ Up: Hopes of progress in ceasefire talks stoked risk appetite and supported the broader index. However, clash fears on 5/28 showed a two-sided effect, briefly amplifying volatility.
- KOSDAQ Small/Mid-Cap Growth ▼ Down: Joyworks & Co. hit its lower limit, while MK Electron and Toolgen plunged. With liquidity flowing into large caps, the KOSDAQ was broadly sidelined, ending the week down -9.63%.
- Energy/Natural Gas Inverse ETNs ▼ Down: The KOSPI's top decliners were dominated by natural gas inverse 2X ETNs (Meritz, Hana, KIS, Samsung, Shinhan, KB). Losses on these inverse products reflected sharp drops in oil and natural gas prices, underscoring elevated energy-price volatility.
KOSPI Weekly Leaders
| Stock | Close (KRW) | Note |
|---|---|---|
| Seoul Food (pref.) | 10,070 | Limit-up |
| LG Electronics | 293,000 | Limit-up |
| LG CNS | 113,800 | Limit-up |
| Samsung Electro-Mechanics (pref.) | 765,000 | Limit-up |
| LG Innotek | 1,458,000 | ▲ Up |
| LG Corp. | 146,600 | ▲ Up |
| Hyundai AutoEver | 931,000 | ▲ Up |
KOSDAQ Weekly Leaders
| Stock | Close (KRW) | Note |
|---|---|---|
| TS Investment | 1,527 | Limit-up |
| Obigen | 9,030 | Limit-up |
| Nuriplan | 2,155 | Limit-up |
| Flitto | 10,950 | Limit-up |
| Robostar | 94,000 | ▲ Up |
| Sena Technologies | 48,400 | ▲ Up |
💰 Foreign & Institutional Weekly Flow
Aggregated weekly net-buying figures for foreign and institutional investors were not separately compiled this week. Based on news reports, however, institutions net-bought approximately KRW 2.3 trillion on 5/29, driving the KOSPI's record high. In particular, the National Pension Service's decision to raise its domestic equity allocation fueled expectations of greater institutional buying power, lifting investor sentiment.
Considering that the prior week (around 5/19) saw foreign investors sell more than KRW 42 trillion over nine consecutive sessions of net selling, this week's rebound can be interpreted as the combined result of easing foreign selling and buying by institutions and pension funds. At the same time, supply-demand pressure from domestic equity allocations exceeding target levels was one factor behind Thursday's (5/28) pullback.
🌍 Global Impact
US equities maintained a gradual uptrend, providing a supportive backdrop for Korean stocks.
| Indicator | Close | Change |
|---|---|---|
| Dow Jones | 51,032.46 | +0.72% |
| Nasdaq | 26,972.62 | +0.20% |
| S&P 500 | 7,580.06 | +0.22% |
| USD/KRW | 1,507.13 | — |
The Dow (+0.72%), Nasdaq (+0.20%), and S&P 500 (+0.22%) all advanced, underpinning risk appetite. However, the won/dollar rate held at 1,507.13, extending its march above the 1,500 level and remaining a headwind for foreign-investor flows. Oil and natural gas prices fell sharply over the week (sending natural gas inverse ETNs lower), reinforcing expectations of stabilizing inflation.
The US Core PCE Price Index (forecast 0.3%) and Preliminary GDP (forecast 2.0%), due on 5/28, were read as signals of a balance between price stability and growth, supporting risk appetite. The biggest swing factor of the week remained the trajectory of US–Iran ceasefire negotiations.
📋 This Week's Economic Indicators & Earnings
Below are the major overseas economic events (High impact) scheduled for this week (5/25–5/29). Actual release figures could not be specifically confirmed from collected news, so they are marked "TBD."
| Date (KST) | Country | Event | Forecast / Previous | Actual |
|---|---|---|---|---|
| 5/27 | AUD | CPI m/m | 0.6% / 1.1% | TBD |
| 5/27 | AUD | CPI y/y | 4.4% / 4.6% | TBD |
| 5/27 | AUD | Trimmed Mean CPI m/m | 0.3% / 0.3% | TBD |
| 5/27 | NZD | Official Cash Rate | 2.25% / 2.25% | TBD |
| 5/27 | NZD | RBNZ Monetary Policy Statement | - / - | TBD |
| 5/27 | NZD | RBNZ Rate Statement | - / - | TBD |
| 5/27 | NZD | RBNZ Press Conference | - / - | TBD |
| 5/28 | USD | Core PCE Price Index m/m | 0.3% / 0.3% | TBD |
| 5/28 | USD | Prelim GDP q/q | 2.0% / 0.7% | TBD |
| 5/29 | GBP | BOE Gov Bailey Speaks | - / - | TBD |
| 5/29 | CAD | GDP m/m | 0.1% / 0.2% | TBD |
Domestic Disclosures (DART): No major disclosures were compiled this week.
Earnings Surprises/Misses: No domestic listed-company earnings surprises or misses were directly compiled this week. Across the broader market, however, expectations for the semiconductor cycle and AI-chip demand continued to support investor sentiment.
🔮 Next Week Outlook & Key Risks
Next week (the first week of June), the key items to monitor are expected to be whether the won/dollar rate consolidates around the 1,500 level and whether progress in US–Iran ceasefire talks is sustained. The US ISM Manufacturing and Services indices, along with key employment data (the jobs report), are scheduled for release and may influence expectations for the Federal Reserve's rate path. The actual pace of the National Pension Service's domestic equity allocation increase and whether foreign net selling subsides will be decisive for any further KOSPI upside.
The main risk factors are as follows.
- Deepening K-Shaped Divergence: There is a risk that the KOSDAQ's structural weakness could erode the overall market's underlying strength.
- Sticky Exchange Rate: If the won/dollar rate stays entrenched around 1,507, the possibility of foreign capital outflows remains a burden.
- Geopolitical Volatility: Should US–Iran ceasefire talks flip back into a clash phase as they did on 5/28, oil and equity volatility could widen.
- Short-Term Supply-Demand Pressure: Profit-taking after the record high and the National Pension Service's allocation exceeding its target level keep short-term supply-demand pressure in play.
- Unwinding of Large-Cap Concentration: If the concentration in large-cap semiconductors unwinds, index volatility could increase.
⚠️ Investment Disclaimer
Disclaimer: This post is for informational purposes only and does not constitute investment advice. All investment decisions are the sole responsibility of the investor. Past performance does not guarantee future results. Particularly in a phase like this week, where polarization between the KOSPI and KOSDAQ is extreme, diversification and risk management become even more important.
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