KOSPI Extends Gains for Third Day as Institutions Buy; KOSDAQ Rebounds on AI Optimism
Seoul stocks rose Friday as institutional investors drove buying in technology and transport shares amid optimism over favorable U.S.–Korea tariff talks and AI collaboration news. - Oct 31, 2025 | Seoul
- KOSPI rises 0.50% to 4,107.50, marking a third straight gain
- KOSDAQ up 1.07% to 900.42, rebounding after two sessions of declines
- Institutional net buying ₩8.1 trn drives rally in IT and transport names
- Foreign and retail investors book profits after recent surge
- AI sector rallies as NVIDIA CEO Jensen Huang visits Korea, raising industry co-operation hopes
- KRW firms to ₩1,424.8 per USD as risk sentiment improves
The Korean equity market ended higher Friday, led by institutional buying in technology and transport shares as optimism grew over progress in U.S.–Korea tariff negotiations. The KOSPI rose 0.50% to close at 4,107.50, while the KOSDAQ climbed 1.07% to 900.42, supported by AI and manufacturing-related stocks.
Despite a soft lead from Wall Street, the local market saw continued institutional inflows as policy clarity and sector rotation kept confidence intact.
Investor Flows (KRW billions)
| Investor Type | KOSPI | KOSDAQ |
|---|---|---|
| Foreigners | −6,034 | +1,731 |
| Institutions | +8,142 | +1,442 |
| Individuals | −2,025 | −3,087 |
Foreign investors trimmed exposure in electronics and auto names after recent gains, while institutions increased allocations to cyclical and IT-service stocks.
Source: KRX Market Brief
251031마감시황Brief
Sector Performance
| KOSPI Sectors | Change |
|---|---|
| IT Services | +4.3% |
| Entertainment & Culture | +2.9% |
| Transport & Logistics | +2.0% |
| Transport Equipment | +1.5% |
| KOSDAQ Sectors | Change |
|---|---|
| General Services | +3.4% |
| Machinery & Equipment | +2.9% |
| Pharmaceuticals | +1.6% |
Ticker Highlights (KRX)
- Samsung Electronics (KRX:005930) – Edges higher as institutions add positions in large-cap tech
- SK Hynix (KRX:000660) – Extends gains on chip sector momentum and earnings expectations
- Hyundai Motor (KRX:005380) – Advances with transport equipment sector rally
- Kakao (KRX:035720) – Rises on digital-service strength within IT segment
- AI & Semiconductor Suppliers – Benefit from NVIDIA CEO Jensen Huang’s Korea visit boosting AI partnership expectations
Global Market Context
Asian equities were mixed Friday. The Dow Jones fell 0.2% and the Nasdaq lost 1.6% overnight on profit-taking in U.S. tech names, but Australian and Korean shares outperformed on local drivers. Japan’s Nikkei slipped 0.7%, while the Hang Seng Index fell 1.0%. Investors are positioning ahead of next week’s FOMC decision and further corporate earnings from global tech leaders.
Market Outlook
Analysts expect the Korean market to maintain a constructive tone into early November, supported by policy tailwinds and foreign capital flows.
“Improving trade sentiment and AI industry co-operation news are helping stabilize investor psychology,” said a Seoul-based strategist. “However, global yield movements and U.S. data will remain key short-term variables.”
By Korea Economy News Market Desk | Seoul
Sources: KRX Market Brief
