KOSDAQ surges 5%, triggers 2nd-straight sidecar; KRW 2.7T foreign inflow on National Growth Fund

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.