On the 20th, the South Korean stock market is showing a consolidation phase as tensions from the Middle East continue. Early in the day, MSCI released a disappointing assessment of the South Korean stock market, lowering the outlook for inclusion in the MSCI developed market index, which is adding pressure to investor sentiment. However, the approval of a supplementary budget worth 30 trillion won the previous day is supporting the index with policy momentum.
As of 9:17 a.m. that day, the KOSPI index rose by 5.05 points (0.17%) to record 2982.79. At the same time, the KOSDAQ index increased by 3.77 points (0.48%) to 786.28.
In the securities market, individuals are leading the rise in the index with net purchases of 100 billion won. Institutions and foreigners are showing selling pressure with net sales of 14 billion won and 90 billion won, respectively.
The top stocks by market capitalization in the KOSPI are mixed. Shares of Samsung Electronics, SK hynix, Samsung Biologics, and Celltrion are rising. Conversely, stocks of Hanwha Aerospace, Hyundai Motor, NAVER, and Kakao are experiencing declines due to profit-taking.
At the same time, in the KOSDAQ market, individuals are also in buying mode with purchases worth 20 billion won. Institutions and foreigners are currently net selling 1 billion won and 20 billion won, respectively.
The top stocks by market capitalization in the KOSDAQ are also mixed. Alteogen, Ecopro BM, Rainbow Robotics, and PharmaResearch are seeing upward trends in their stock prices. Stocks of HLB, Peptron, CLASSYS, and SME are trading at lower prices than the previous day.
On that day, the exchange rate of the won against the U.S. dollar in the Seoul foreign exchange market recorded 1371.40, down 6.4 won from the previous day.
Overnight, the New York stock market was closed for the Emancipation Day holiday. European markets mostly fell due to the impact of the Middle East situation. The lack of specific statements from U.S. President Donald Trump regarding military intervention contributed to uncertainty affecting the overall stock markets.
Early that morning, Morgan Stanley Capital International (MSCI) announced that South Korea recorded disappointing results in its 'Market Accessibility Assessment.' This evaluation is considered a preliminary indicator for determining inclusion in the 'Watch List' for MSCI developed market index status.
According to MSCI's '2025 Annual Market Accessibility Review,' the South Korean stock market received a slightly improved assessment in terms of short-selling accessibility; however, it is still criticized for low accessibility in key areas such as dividend record dates, foreign exchange markets, and over-the-counter trading systems.
As a result, it remains uncertain whether South Korea will be included as a 'Watch List' candidate for inclusion in developed markets in the market classification announcement scheduled for the 25th.
Previously, the government confirmed a supplementary budget of 30.5 trillion won on the 19th. In particular, it plans to provide consumption coupons for economic recovery worth between 150,000 won and 500,000 won per person to all citizens.