KOSPI Daily Trading Volume Hits Record $21B in February

The KOSPI surged past the 6,300-point level in February, pushing daily average trading volume to a record high above 30 trillion won ($21 billion) for the first time. Samsung Electronics and SK Hynix accounted for one-third of total trading value, underscoring the semiconductor-driven nature of the current rally.

According to the Korea Exchange on March 2, daily average trading volume on the KOSPI reached 32.234 trillion won last month, up 19% from 27.056 trillion won in January. The increase reflects the market's rally driven by optimism in the semiconductor sector and expectations for passage of a third commercial code amendment. The KOSPI index rose 20% in February, breaking through the 6,000-point level on February 25 and surpassing 6,300 points the following day.

Trading was heavily concentrated in major semiconductor stocks. Samsung Electronics, SK Hynix, and Samsung Electronics preferred shares recorded combined daily average trading volume of 10.502 trillion won, accounting for 33% of total market turnover.

Stock turnover also accelerated sharply. The KOSPI's listed share turnover ratio jumped to 28.0% in February from 18.13% in January—the highest level since April 2022's 35.02%. The turnover ratio, calculated by dividing trading volume by the number of listed shares over a given period, indicates heightened trading activity.

Securities analysts expect the KOSPI's long-term uptrend to continue but warn of potential short-term corrections. Concerns are mounting that profit-taking could intensify amid Middle East oil price risks as the United States and Israel pressure Iran.

"The KOSPI's 12-month forward price-to-earnings ratio stands at 10.4 times, in line with historical averages, but excluding Samsung Electronics and SK Hynix, the P/E ratio rises to 13.2 times with a price-to-book ratio of 1.27 times, indicating elevated valuations," said Yoo Myung-gan, analyst at Mirae Asset Securities.

Uncertainty surrounding the Trump administration's tariff policies also persists. Lee Kyung-min, analyst at Daishin Securities, noted that "the current KOSPI rally is driven by upward revisions to semiconductor sector earnings forecasts, differentiating it from past liquidity-driven rallies." However, Lee cautioned that "earnings forecast momentum may slow ahead of late-March shareholder meetings and the first-quarter pre-earnings season," adding that "uncertainty factors such as confirmation of Federal Reserve Chair nominee Kevin Warsh's hearing schedule could also heighten volatility."