The Korean stock index, Kospi, has surged to an all-time high in four years and two months, showing a bullish run in the local stock market.
A fierce wave of foreign purchases has driven rallying, and stocks in crypto companies have also climbed. South Korean President Lee Jae-myeon will outline his key financial policies at a 100-day press conference on September 11th.
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Hoping Kospi to hit highs due to market reform
Kospi opened on Thursday at another ATH of 3,336.60 after closing at 3,314.53 the previous day. This is an increase of 1.67% from the previous day. Wednesday reached its daytime peak of 3,317.77. This surpassed the previous high of 3,316.08 set on June 25, 2021. Since the beginning of the year, the index has scored 38.1%, marking the sharpest growth of 42 major stock indexes in 32 countries.
The net foreign investors purchased around $1 billion, the largest inflow since June 2023, while the Korean institution added $654 million. In contrast, Korean retail investors sold around $1.63 billion to round out the profits.
Analysts attribute it to the optimism surrounding President Lee Jae Myung’s capital market reform agenda. Another contribution to the surge was US interest rate cuts, which weakened the dollar. Additionally, the government has decided to keep the “major shareholder” threshold of capital gains tax at $3.6 million (agulting 5 billion). Rather than lowering the threshold to $720,000, the decision boosted investor sentiment (₩1 billion).
The final policy stance will be announced Thursday at a press conference commemorating the president’s first 100-day inauguration. Following this announcement, Kospi was able to see even more upward momentum.
Crypto-linked inventory increases profits
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At present, attention is being paid to whether Korean stock market rallies will continue to raise stock prices for crypto companies.
Woori Technology Investment Co., Ltd is a venture capital firm listed in Korea’s high-tech-focused junior exchange. marked a profit of 50.35% and a profit of 50.35%. Foreign investors currently own 6.39% of the 84 million shares outstanding.
The company also holds stakes in Dunamu, the parent company of Upbit, South Korea’s largest cryptocurrency exchange.
The rally is supported by expectations of a wave of regulatory reforms to support the adoption of stubcoin in Korea and trademark submissions for companies related to digital asset companies.
Neowiz Holdings, a Korean game developer who owns 123 bitcoins, has seen its share price rise by 38% a year, with $18.
In contrast, Wemade, South Korea’s largest Bitcoin holder with 223 BTC, has dropped 19.3% a year to $20 despite the former CEO being acquitted in July on a charge related to the operation of the supply of Wemix tokens.
Currently, around 15 listed Korean companies collectively hold at least 450 Bitcoins along with other cryptocurrencies, highlighting the sector’s presence in the company’s balance sheet.
