Seoul — July 23, 2026. Published after the market close; prices are official closing values.
The 30-second version
- The KOSPI jumped 4.40% to 7,096.89, closing back above 7,000 for the first time in five sessions. The KOSDAQ rose 5.22% to 790.28 — fast enough to trigger a buy-side “sidecar” (an automatic five-minute pause on program-trading orders) during the session.
- The catalyst came from the US after-hours: Alphabet’s strong Q2 results and raised AI capital-spending guidance flipped semiconductor sentiment overnight.
- Foreign investors bought a net KRW 2.14 trillion (~$1.5B) of KOSPI shares today, a fourth straight session of buying. Individuals sold KRW 2.21 trillion, taking profits.
- The rally was broad: 7 of 8 sector ETF proxies advanced, led by construction, batteries, and steel. Banks were the lone laggard, essentially flat.
- The won strengthened, with USD/KRW closing at 1,466.8 in Seoul, down 13.3 won.
- The backdrop was not all friendly: WTI crude rose 3.1% to $89.53 on Middle East tensions, and the VIX climbed 6% to 17.64.
One earnings report flipped the whole tape
Wednesday’s US session gave no hint of what was coming. The S&P 500 slipped 0.14% and the Nasdaq fell 0.57% amid caution ahead of big-tech earnings and rising Middle East risk, though the Philadelphia Semiconductor Index managed a 0.44% gain. Then, after the US close, Alphabet reported a strong second quarter and raised its capital-expenditure guidance for AI infrastructure.
For Korea, that single data point matters enormously. AI capex is, in large part, a purchase order for memory chips — and memory is Korea’s biggest export. Samsung Electronics rose 3.65% to 270,000 won and SK hynix gained 4.86% to 1,919,000 won. The trade spread well beyond chips: expectations of more AI data-center construction lifted power-infrastructure names such as LS Electric and HD Hyundai Electric, and Samsung Electro-Mechanics added 7.66%. NAVER, Korea’s homegrown internet platform, surged 11.73%, and battery makers ripped higher — Samsung SDI up 11.46%, LG Energy Solution up 8.41%.
By sector (using KODEX sector-ETF proxies, which can deviate slightly from official indices), construction gained 9.70%, secondary batteries 9.53%, steel 6.15%, bio 5.44%, and semiconductors 3.99%. Banks were the exception at -0.06% — more on that below.
Foreigners bought, locals cashed out
Today’s KOSPI move was driven squarely by foreign money: a net KRW 2.14 trillion (~$1.5B) of buying, the fourth consecutive session of net purchases. Individual investors sold a net KRW 2.21 trillion into the strength, while institutions were modest net buyers at KRW 101.1 billion.
The fuller picture — the official combined breakdown covering both KOSPI and KOSDAQ — is only available through yesterday’s session, and it tells the same story: on July 22, foreign investors bought a net KRW 2.62 trillion (~$1.8B) across both markets while individuals sold KRW 1.22 trillion and institutions sold KRW 1.40 trillion. Over the five sessions through Wednesday, cumulative foreign net buying reached roughly KRW 4.37 trillion (~$3.0B).
There is also plenty of dry powder on the sidelines. Investor deposits — cash parked in brokerage accounts — stood at KRW 106.7 trillion (~$73B) as of July 21, with margin-loan balances (retail leverage) at KRW 33.6 trillion (~$23B).
A violent month, and why reclaiming 7,000 matters
Context makes today’s move less surprising than it looks. July has been brutal for Korean equities: the KOSPI fell 8.95% on July 13, bounced 6.24% on July 15, dropped 6.37% the very next day, and fell another 4.46% on July 20. Today’s 4.40% gain is the third straight up day and finally puts the index back above the psychologically important 7,000 line — though still below the 7,656 close of July 7.
Two caveats keep this from being an all-clear. First, the risk that helped cause July’s damage has not gone away: WTI crude jumped 3.11% to $89.53 today on Middle East military tensions, and the VIX rose even as Seoul rallied — a sign that hedging demand is alive and well. Today, AI-driven buying simply overwhelmed the macro worry; that balance can shift.
Second, the one sector that sat out the rally — banks — was busy with earnings season. JB Financial Group filed preliminary consolidated results along with dividend record-date decisions, and Hana Financial Group disclosed subsidiary dividend decisions; NH Investment & Securities also posted preliminary results. On a day when money rotated hard into AI and growth cyclicals, defensive dividend payers were left behind.
One overnight footnote: US-listed Korea proxies had not yet caught the news — the iShares MSCI South Korea ETF (EWY) fell 1.43% and Coupang slipped 0.82% in Wednesday’s US session, before Alphabet reported.
Key closing numbers
| Instrument | Close | Change |
|---|---|---|
| KOSPI | 7,096.89 | +4.40% |
| KOSDAQ | 790.28 | +5.22% |
| USD/KRW (Seoul close) | 1,466.8 | -13.3 won |
| Samsung Electronics | 270,000 | +3.65% |
| SK hynix | 1,919,000 | +4.86% |
| NAVER | 220,000 | +11.73% |
| Samsung SDI | 467,000 | +11.46% |
| LG Energy Solution | 348,000 | +8.41% |
| WTI crude | $89.53 | +3.11% |
| VIX | 17.64 | +6.01% |
What to watch next
- The rest of US big-tech earnings. Alphabet set the tone; further capex confirmation (or disappointment) from other hyperscalers will decide whether the AI-memory trade extends.
- Whether foreign buying stretches to a fifth straight session. The official combined KOSPI+KOSDAQ breakdown for today publishes tomorrow.
- Oil. WTI near $90 on Middle East tensions is the main counterweight to the AI story; a further spike would test today’s optimism.
- Bank earnings and dividend season, with JB Financial, Hana Financial, and NH Investment & Securities filings already in.
- Volatility itself. July has produced daily swings between -8.95% and +6.24%; three green days do not yet make a calm market.
FAQ
Why did the Korean stock market surge on July 23, 2026?
Alphabet’s strong Q2 results and raised AI capital-spending guidance, released after the US close, boosted expectations for memory-chip demand. Foreign investors bought a net KRW 2.14 trillion of KOSPI shares, driving the index up 4.40% to reclaim the 7,000 level.
What is a sidecar in the Korean stock market?
A sidecar is an automatic five-minute pause on program-trading orders, triggered when index futures move sharply in one direction. Think of it as a speed bump rather than a full stop — regular orders keep trading, unlike a circuit breaker, which halts the whole market. Today’s KOSDAQ surge triggered a buy-side sidecar.
Are foreign investors buying Korean stocks?
Yes. Today marked a fourth straight session of foreign net buying on the KOSPI (KRW 2.14 trillion, roughly $1.5B). Across both KOSPI and KOSDAQ, cumulative foreign net buying reached about KRW 4.37 trillion (~$3.0B) over the five sessions through July 22.
Why didn’t bank stocks join the rally?
The bank-sector ETF proxy closed essentially flat (-0.06%) while every other tracked sector rose. Money rotated aggressively into AI, semiconductor, and battery names, and banks — in the middle of earnings and dividend disclosures from JB Financial, Hana Financial, and others — were treated as a source of funds rather than a destination.
Disclaimer: This is an information and analysis publication, not investment advice. See our Methodology for data sources, standards, and our corrections policy.