After a weak July, South Korea's KOSPI surged as much as 17% intraday on July
31, the largest single-day gain on record. Foreign investors moved aggressively
— net-buying about KRW1.6 tln within just over two minutes of the open and
finishing the day with a record KRW7.18 tln net inflow; domestic retail
investors recorded a record KRW8.2 tln net sell. Some market participants view
the move as a trend reversal, but analysts warn the market’s sensitivity to
foreign flows and its volatility make a sustained rally uncertain. Analyst Lee
Chae-won said it is unclear whether the rise is a technical rebound or the start
of an uptrend and pointed to the semiconductor cycle as decisive, advising
investors to watch whether semiconductor supply bottlenecks and high operating
margins persist beyond 2028 when positioning over the next six months. An asset
manager added that retail investors locked in at current highs may sell near
prior resistance around 8,000–9,000 points, which could cap gains.
