KOSPI surges past 3,000 on budget optimism

The KOSPI surpassed the 3,000 mark for the first time in three and a half years, buoyed by optimism over a domestic economic rebound fueled by a supplementary budget of more than 20 trillion won. The upbeat sentiment offset investor concerns about ongoing instability in the Middle East.

On Friday, the KOSPI closed at 3,021.84, up 44.10 points, or 1.48 percent, from the previous day. It marked the index’s first close above 3,000 since Dec. 28, 2021, when it finished at 3,020.24. The KOSPI’s market capitalization also reached a record 2,472 trillion won.

After two failed attempts earlier in the week, the index finally broke through the 3,000 level on the strength of foreign and institutional buying. Foreign investors were net buyers of 554.7 billion won on Friday, while institutions added 37.3 billion won.

The KOSDAQ also gained, closing at 791.53, up 9.02 points, or 1.15 percent. It marked the highest close since Aug. 1, 2024, when it ended at 813.53, effectively recovering to pre-Black Monday levels. Markets had slumped last August amid fears of a U.S.-led recession.

While European markets fell around 1 percent and most Asian markets remained flat amid ongoing military conflict between Israel and Iran, South Korea’s market was lifted by optimism over the supplementary budget announced a day earlier by the Lee Jae-myung administration.

“The passage of a large supplementary budget raised expectations for increased liquidity, which was reflected in the stock market,” said Lee Jae-won, an analyst at Shinhan Securities. “Stocks expected to benefit from ‘livelihood recovery consumption coupons,’ such as those in the film and cosmetics sectors, posted strong gains.”


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