KOSPI Surges 5% on Record Institutional Buying, Nears 6,000

The KOSPI reclaimed the 5,900 level for the first time since the U.S.-Iran war. Record institutional buying drove the index up more than 5%, putting the 6,000 threshold within reach.

The KOSPI closed at 5,925.03 on March 18, up 284.55 points (5.04%) from the previous session, according to the Korea Exchange. The index opened at 5,767.10 and accelerated gains in afternoon trading amid heavy buying.

A sidecar—a temporary halt on program trading—was triggered at 2:34 p.m. when the KOSPI 200 futures index rose 5.08% to 887.25. This marked the third sidecar activation this month and the fourth this year.

Institutional and foreign investors drove the rally with coordinated buying. Institutions purchased a record 3.1 trillion won worth of shares, while foreign investors net bought 886.4 billion won. Retail investors net sold 3.87 trillion won, taking profits.

Semiconductors led the advance. Samsung Electronics rose 7.53% to 208,500 won, while SK Hynix surged 8.87%. Samsung Electronics preferred shares gained 5.74%, Hyundai Motor 4.41%, SK Square 7.33%, and Samsung Biologics 2.46%.

Samsung Electronics confirmed at its annual shareholders meeting a total dividend of 3.75 trillion won, including a 1.3 trillion won special dividend, along with a 16 trillion won share buyback plan. The move linking improved earnings to shareholder returns boosted investor sentiment.

Analysts expect this shareholder return policy to extend beyond Samsung Electronics to Samsung Life Insurance, Samsung C&T, and other group affiliates, potentially setting a precedent for other major listed companies.

Global semiconductor optimism added momentum. On day two of Nvidia's GTC conference, CEO Jensen Huang signaled potential collaboration with Samsung Electronics and publicly expressed gratitude, lifting sentiment across the sector.

"Samsung is manufacturing the Grok3 LPU," Huang said at GTC 2026 in San Jose, California, on March 16. "Shipments will begin in the third quarter of this year."

"Samsung Electronics' shareholder return policy and global tech events converged to improve investor sentiment," said Lee Kyung-min, a researcher at Daishin Securities. "With strong institutional and foreign buying, KOSPI has room for further gains."

The KOSDAQ closed at 1,164.38, up 27.44 points (2.41%). The index opened at 1,156.46, up 19.52 points (1.72%), and extended gains in the afternoon. Retail and institutional investors sold 392.7 billion won and 27.5 billion won respectively, while foreign investors absorbed the selling with 491.7 billion won in net purchases.

Policy expectations accelerated the KOSDAQ's gains. Financial Services Commission Chairman Lee Eog-weon said at a capital market stabilization meeting at Cheong Wa Dae on March 18: "We will divide the KOSDAQ market into two leagues—mature innovative companies and growing scale-up companies—with mobility between them to enhance market dynamism and competitiveness."

"We will ensure innovative companies can continue to grow through the capital market, based on differentiation among the KOSPI, KOSDAQ, and KONEX markets," Lee added.