🇰🇷📈 June 4, 2025 (Wed): South Korea Stock Market and Economic Highlights

📊 Market Summary

• KOSPI: 2,770.84 (+2.66%)
• KOSDAQ: 750.21 (+1.34%)
• KRW/USD Exchange Rate: 1,369.10 KRW (-0.72%)

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📰 Key News and Developments

🗳️ Market Surges on President Lee Jae-myung's Inauguration

On President Lee Jae-myung’s first day in office, the KOSPI surged by 71.87 points (+2.66%) to close at 2,770.84. The rally was driven by investor expectations for the new administration’s economic policies and the resolution of political uncertainties.
(Source: Money Today)

🌐 Increased Foreign Buying Activity

Foreign investors were net buyers of KRW 1.05 trillion in the KOSPI and KRW 146.6 billion in the KOSDAQ, boosting market sentiment. The continued inflow of foreign capital was supported by a stronger Korean won.
(Source: Yonhap News)

💼 Domestic Demand and AI Stocks Lead Gains

Expectations for domestic demand stimulus under the new government pushed up stocks in retail, food & beverage sectors. AI-related stocks also remained strong, reflecting investor confidence in tech growth.
(Source: TTL News)

📈 Optimism for a KOSPI 5000 Era

With the political transition and optimism for new economic policies, some analysts foresee the potential for the KOSPI to reach 5,000 points in the long term. This projection is also supported by robust foreign capital inflows.
(Source: Newsis)

🏦 Financials and Blue Chips Drive Market

Financial and large-cap stocks led Wednesday’s rally, suggesting a vote of confidence in the market’s stability and the new administration’s economic direction.

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🔮 Outlook and Upcoming Events

• June 5 (Thu): U.S. weekly jobless claims report
• June 6 (Fri): U.S. Nonfarm Payrolls report
• June 12 (Thu): Korea stock and derivatives expiration day
• June 17–18: FOMC (U.S. Federal Reserve) meeting

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💡 Conclusion & Investment Strategy

Conclusion:
The Korean stock market saw a broad-based rally on the back of political clarity and optimism around the new government’s growth-oriented policies. Foreign investor interest and expectations for domestic demand expansion are supporting sentiment.

 

Strategy:

• Increase exposure to domestic demand sectors: Retail, food, and consumer stocks are likely to benefit from stimulus expectations.
• Maintain interest in AI and tech: Technology and AI-related stocks continue to show long-term growth potential.
• Focus on financials and blue chips: These sectors may offer relative stability amid policy transitions.

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📝 Final Thoughts

As political uncertainty clears and policy optimism rises, the Korean market is entering a potentially bullish phase. Investors are encouraged to stay alert to economic signals while maintaining a strategic, diversified approach.