Ahead of Seol Holiday, Korean Stock Market Closes Higher... Foreign Buying, Defense and AI Stocks Strong

The Korean stock market closed higher on the 24th, ahead of the Lunar New Year holiday, supported by a rebound buying spree following the previous day's decline and the inflow of foreign capital.

The KOSPI index and others are displayed on the status board of Hana Bank dealing room in Jung-gu, Seoul. Photo by Jo Yong-jun

On that day, the KOSPI closed at 2,536.80, up 21.31 points (0.85%) from the previous trading day. The index started at 2,529.29, up 13.80 points (0.55%), and continued its upward trend. Foreigners and institutions net bought stocks worth 229.9 billion KRW and 70.6 billion KRW, respectively. Individuals sold stocks worth 380.1 billion KRW on their own.

Among the top market capitalization stocks, Korea Zinc (11.62%), Hanwha Ocean (10.10%), Hanwha Aerospace (7.30%), Hyundai Mobis (4.56%), Samsung Biologics (3.23%), and HD Hyundai Heavy Industries (2.03%) closed higher. Hyundai Motor (-1.91%) and Kia (-0.97%) declined.

By sector, metals (4.10%), construction (2.76%), machinery equipment (2.35%), medical precision (2.06%), and pharmaceuticals (1.91%) rose. On the other hand, paper and wood (-0.80%) and insurance (-1.12%) sectors fell. During the holiday break, the possibility of policy risks from the Trump administration resurfacing led to differentiated sectoral flows. Ji-won Kim, a researcher at KB Securities, said, "Defense, shipbuilding, and artificial intelligence (AI) sectors were strong due to expectations of policy benefits," adding, "In particular, Hanwha Aerospace rose over 7% following news that U.S. President Donald Trump demanded increased defense spending from NATO member countries."

The KOSDAQ index recorded 728.74, up 4.73 points (0.65%) from the previous session. The index opened at 725.78, up 1.77 points (0.24%), and extended its gains during the session. Foreigners and institutions bought stocks worth 67.4 billion KRW and 9.9 billion KRW, respectively. Individuals net sold stocks worth 87.4 billion KRW.

Among the top market capitalization stocks, HPSP (6.10%), Alteogen (4.32%), Shinseong Delta Tech (2.89%), SM (2.69%), Peptron (2.53%), Rigachem Bio (2.42%), and JYP Ent. (2.04%) rose. Conversely, Hugel (-3.35%), Classys (-1.65%), HLB (-1.62%), EcoPro BM (-1.22%), and Enchem (-1.04%) declined.

Researcher Kim advised, "From the 27th to the 30th, during the Lunar New Year holiday break, the U.S. Federal Open Market Committee (FOMC), European Central Bank (ECB) interest rate decisions, and earnings announcements from big tech companies such as Microsoft (MS) and Tesla are scheduled," adding, "Since the results of these major events will be reflected all at once during trading on the 31st, caution is needed regarding the potential for increased volatility."