KOSPI Hits Record High, Fueled by Foreign Individual Investor Buying

The KOSPI index surpassed the 2,500-point mark on the morning of the 7th, once again setting a new all-time high. The primary driver of this upward trend has been the aggressive buying of domestic stocks by foreign individual investors, often referred to as 'blue-eyed ants.' This represents a threefold increase compared to the 2,500-point level a year ago.

In the first two trading days of May alone, foreign investors purchased approximately 7 trillion won worth of KOSPI stocks. Since April 28th, the pilot operation of the 'Integrated Foreign Account' service, a collaboration between Samsung Securities and the US online brokerage Interactive Brokers (IBKR), has enabled foreign investors to buy Korean stocks directly through their home country's brokerage apps, without needing to open an account with a domestic Korean brokerage.

In June, South Korea's designation status regarding the MSCI Developed Markets Index will be decided.