The KOSPI index has recorded a fourth consecutive week of declines, closing at 5 500.3. Trading volume also fell sharply from an average of 59.9 trillion won in June to 17.6 trillion won this week, signaling a slowdown in market activity. Kim Dae-jun of the Korea Investment Securities Research Institute said on the 26th that “it is difficult to expect a recovery for the KOSPI index” and urged investors to respond with selective strategies rather than broad expansion.
Kim noted that SK Hynix’s decision to cease its share repurchase has led to a drop in market liquidity, while Meta’s AI investments have broadened the tech sector’s influence. He added that “both domestic and overseas big‑tech performance, together with various events, suggest that volatility could increase as investors seek new opportunities.” In particular, he highlighted the risk of a French fiscal adjustment, noting that France’s 10‑year Treasury yield has risen to 5.02%, widening the spread with U.S. rates by 1.67 percentage points – an unusual phenomenon that may impose higher discount‑rate costs.
He also pointed to Middle‑East tensions as a key variable, observing that WTI crude had peaked at $103.3 per barrel and U.S. strategic inventories fell to 2.8 million barrels, the lowest level in recent history. “In this environment, the rise in oil prices is being felt by Donald Trump’s administration and the ruling party, which can have a strong effect,” he said, warning that such trends could persist until the next election.
Ultimately, Kim set a threshold of 5 200 points for the KOSPI index’s 12‑month leading PBR (price‑to‑book ratio) at 1× and stressed that “instead of broad expansion, selective coverage of high‑growth sectors such as Hyeon and Haeun is required to achieve a stable return.”