KOSDAQ Surges 2.8% as Korean Tech Mid-Cap Rally Broadens Beyond Blue-Chip Leaders

• KOSDAQ index jumps 2.8%, outpacing KOSPI on broad-based technology buying
• Semiconductor equipment, battery, and AI software names lead the advance
• Foreign institutional inflows hit a six-week high as risk appetite returns to Korean equities

South Korea's KOSDAQ index surged 2.8% in Monday trading, significantly outperforming the large-cap KOSPI as investor appetite broadened from blue-chip semiconductor exporters into mid-cap technology companies. The rally was driven by improved global risk sentiment, easing US tariff concerns, and growing domestic conviction that Korea's AI-related supply chain is entering a new growth phase. Trading volume on the KOSDAQ hit its highest level in three weeks, signaling genuine institutional participation rather than retail-driven momentum chasing the index higher.

Semiconductor equipment makers, secondary battery companies, and domestic AI software firms posted the largest absolute gains. Analysts at Korea Investment and Securities highlighted that valuations in the mid-cap technology segment remained attractive relative to the rally in larger names, creating a catch-up dynamic that foreign fund managers have been willing to exploit. Net foreign purchases on the KOSDAQ reached a six-week high as overseas institutions rotated out of defensive positions into growth-oriented Korean technology names.

Market strategists note that the KOSDAQ rally is consistent with a broader pattern of technology broadening that often accompanies the mid-cycle phase of bull markets in Korean equities. Risks remain elevated, including potential won weakness, geopolitical developments on the Korean peninsula, and uncertainty around the US Federal Reserve rate normalization pace. Traders are watching the 900 level on the KOSDAQ as the next technical resistance that needs to be cleared to confirm a sustained recovery.

Source: Korea Herald, Yonhap News | Cluster 429016