Hello, investors!
On Wednesday, May 28, 2025, the Korean stock market saw a notable upward move, led by strong foreign and institutional buying.
- KOSPI: 2,670.15 (+1.25%)
- KOSDAQ: 728.79 (+0.23%)
- USD/KRW Exchange Rate: 1,376.20 won (+0.01%)
🔍 Key Market Highlights
1. KOSPI Rises on Broad-Based Institutional and Foreign Buying
The main bourse climbed as both foreign and institutional investors turned net buyers. Sectors such as power utilities and beauty led the gains, reflecting improved investor sentiment.
(Source: Nate News, May 28, 2025)
2. Consumer and Business Sentiment on the Rise
Consumer confidence in regional areas like Jeju showed a sharp rebound, signaling localized economic recovery. Additionally, the Business Survey Index (BSI) improved across both manufacturing and non-manufacturing sectors.
(Sources: Nate News, Joseilbo)
3. KIET Slashes Korea's 2025 GDP Forecast
The Korea Institute for Industrial Economics and Trade (KIET) cut its 2025 GDP growth outlook from 2.1% to 1.0%, citing the potential impact of increased U.S. tariffs and external risks.
(Source: KITA.net)
4. Won Slightly Weaker Amid Global Currency Volatility
The won slightly weakened against the dollar as investor focus turned to U.S. consumer confidence data and a weaker Japanese yen.
(Source: Yonhap News)
5. KOSPI Could Hit 3,000 in H2: Analysts
Local analysts now believe that with government stimulus measures and easing trade concerns, the KOSPI could rally to 3,000 points in the second half of the year.
(Source: NoCut News)
📅 Upcoming Key Events
- May 29 (Thu): U.S. Q1 GDP (Second Estimate)
- May 30 (Fri): U.S. PCE Price Index — critical for Fed's interest rate trajectory
💡 Outlook & Investment Strategy
- Momentum from Institutional and Foreign Buying
If the buying trend from institutional and foreign investors continues, further upside in the KOSPI is likely. - Stay Alert to Global Data
Upcoming U.S. GDP and PCE data could shift global investor sentiment, so close attention is warranted. - Currency Volatility Watch
With the won showing signs of mild depreciation, FX volatility hedging or export-related plays could be strategic.
🏁 Final Thoughts
Today’s market strength signals improving sentiment amid global uncertainty. However, volatility stemming from key U.S. economic data releases and shifting expectations around global trade could create new challenges. As always, thoughtful allocation and a diversified strategy are your best allies in navigating these dynamics.