KOSDAQ surges 5%, triggers 2nd-straight sidecar; KRW 2.7T foreign inflow on National Growth Fund
Original: 이제는 코스닥의 시간?…5% 급등에 사이드카 발동 View original →
KOSDAQ surged 4.99% to close at 1,161.13 on May 22, triggering a program-trading sidecar for the second consecutive session — just 33 minutes after the opening bell. While KOSPI edged up 0.41% to 7,847.71, the session's momentum was almost entirely concentrated in the smaller-cap tech index.
National Participation Growth Fund Drives the Rally
The primary catalyst was the South Korean government's launch of the National Participation Growth Fund (국민참여성장펀드), a policy-backed vehicle designed to concentrate capital in advanced-technology KOSDAQ names. The fund's debut simultaneously activated retail, institutional, and foreign demand. Foreign investors net-bought KRW 593.3 billion on the session, with institutions adding KRW 287.8 billion. Cumulatively, foreigners have net-purchased approximately KRW 2.7 trillion over six consecutive trading sessions this month.
Ecopro and Jusung Engineering Lead Gains
Battery-materials group Ecopro (035300.KQ) rallied 12.87% and its subsidiary Ecopro BM (247540.KQ) gained 10.77%, as the fund's mandate toward advanced materials and EV supply chain stocks drove concentrated inflows. Semiconductor equipment maker Jusung Engineering (036930.KQ) surged 20.95%, topping KOSDAQ's single-session leaderboard. In contrast, Samsung Electronics (005930.KS) fell 2.34%, underscoring how sharply the growth-fund catalyst bifurcated large-cap KOSPI blue chips from KOSDAQ tech names. Bio/pharma name Alteogen (196170.KQ) added 3.70%.
5.6% From an All-Time High
At the May 22 close, KOSDAQ stands just 5.6% below its all-time high of 1,226.18, reached on April 27, 2026. Market participants are watching whether sustained foreign inflows and continued policy support will push the index to a new record within the coming sessions.
What to Watch Next
The key near-term catalysts are: disclosure of the fund's constituent stock list and capital deployment timeline; any additional Korea Financial Services Commission (FSC) policy announcements targeting KOSDAQ growth; and month-end foreign ownership change filings due in late May.
Not investment advice. Verify all figures with primary sources before acting.
Related Articles
The Korean won fell through the critical 1,500 per dollar level on May 15, reaching 1,500.2 at 2:13 PM KST — the first breach since April 7. Japan's 10-year JGB yield surged to 2.72%, a 29-year high, triggering risk-off sentiment across Asia, while fading Federal Reserve rate-cut expectations and KRW 5 trillion-plus in foreign equity outflows compounded pressure on the Korean currency.
Margin lending in Korean equity markets reached a record KRW 36.47 trillion as of May 15, up 33.66% from year-end 2025, as retail investors borrowed heavily to chase the KOSPI's approximately 70% year-to-date gain. Short-selling balances simultaneously surged 67.18% to KRW 20.58 trillion, near an all-time peak, prompting securities firms to warn of potential cascading forced-liquidation events.
South Korea's KOSPI crossed 8,000 for the first time in history on May 15, peaking at 8,046.78 before a circuit breaker was triggered as KOSPI 200 futures fell more than 5%. The index closed at 7,493.18, down 6.12%, as foreign investors dumped a net KRW 5 trillion in a single session. Retail investors' seven-day, KRW 30-trillion buying streak could not offset the outflow, while KB Securities raised its KOSPI target from 7,500 to 10,500.
Comments (0)
No comments yet. Be the first to comment!