KOSPI Recovers 3,100 Mark... Boosted by US-Vietnam Trade Agreement and Commercial Act Amendment

The KOSPI opened higher on the 3rd. This is attributed to the conclusion of trade negotiations between the United States and Vietnam, as well as the passage of the Commercial Act amendment bill through the National Assembly following an agreement between the ruling and opposition parties after the previous day's market close.

As of 9:21 a.m. on this day, the KOSPI index was trading at 3,096.27, up 21.83 points (0.69%) from the previous trading day. After opening at 3,100.33, the KOSPI has been fluctuating around the 3,100 mark.

The KOSPI index opened at 3100.33, up 25.27 points from the previous trading day, as dealers were working at the Hana Bank headquarters in Jung-gu, Seoul on the 3rd. July 3, 2025. Photo by Kang Jinhyung

The rise in the KOSPI index is being led by foreign investors. While individual investors have recorded a net selling of 245.1 billion KRW, foreign investors and institutional investors have recorded net purchases of 182.4 billion KRW and 60.2 billion KRW, respectively.

All of the top 10 KOSPI stocks by market capitalization are showing gains. Samsung Electronics (1.81%), SK Hynix (0.72%), Samsung Biologics (0.30%), LG Energy Solution (1.49%), Hyundai Motor (0.94%), KB Financial Group (0.79%), Samsung Electronics Preferred (1.38%), Hanwha Aerospace (3.30%), Kia (1.30%), and Naver (0.10%) are all on the rise.

The KOSDAQ index is also up 0.68% from the previous trading day, standing at 787.46. Individual investors are net buyers of 12.3 billion KRW, while foreign investors and institutional investors are net sellers of 8.9 billion KRW and 1.8 billion KRW, respectively.

Among KOSDAQ stocks, EcoPro BM (2.62%), HLB (0.40%), EcoPro (3.29%), Rainbow Robotics (0.36%), Pharmaresearch (2.87%), Hugel (2.46%), Rigakem Bio (2.96%), Classys (0.46%), Lino Industrial (1.83%), ABL Bio (0.44%), and Pearl Abyss (0.60%) are showing upward trends. On the other hand, Alteogen (-0.46%), Peptron (-1.36%), Kolon TissueGene (-1.30%), SM (-2.01%), and Silicon Two (-6.62%) are showing weakness.

The S&P 500 index in the New York financial market reached a new all-time high on this day.

News of the trade agreement between the United States and Vietnam bolstered the S&P 500 index. Nike, which has manufacturing plants in Vietnam, surged by 4.06%.

Improved risk appetite following the conclusion of the US-Vietnam trade negotiations is also affecting the domestic stock market.

In addition, the impact of the Commercial Act amendment bill, which passed the National Assembly Legislation and Judiciary Committee after an agreement between the ruling and opposition parties following the previous day's market close, appears to be reflected in the market.

The main points of the Commercial Act amendment bill include: 1) explicitly stipulating that company directors have a duty of loyalty to shareholders, 2) introducing electronic general shareholders' meetings, 3) converting outside directors to independent directors, and 4) limiting the voting rights of the largest shareholder and related parties to 3% when appointing audit committee members.

Lee Sunghoon, a researcher at Kiwoom Securities, said, "In the short term, as the market digests these events, there may be some profit-taking in holding companies and securities sectors." He added, "However, the main drivers of demand for sectors benefiting from the Commercial Act amendment have been domestic institutional investors, while foreign investors have maintained a neutral stance due to doubts about actual policy implementation. The passage of the Commercial Act amendment bill is expected to serve as a catalyst for foreign buying in these sectors by removing uncertainty."