Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
KOSPI rebounds from sharp sell-off on Samsung buyback hopes
The KOSPI and Kosdaq indexes are displayed in the dealing room of Hana Bank in Seoul, Wednesday. The benchmark KOSPI closed at 8,471.02, up 3.26 percent from the previous session, while the secondary Kosdaq closed at 909.31, up 2 percent. Yonhap
By Lee Yeon-woo
Korea's benchmark stock index jumped more than 3 percent Wednesday, clawing back some of the previous session's 10 percent plunge, as bargain-hunting and hopes for a major Samsung Electronics buyback lifted investor sentiment.
According to the Korea Exchange, the KOSPI closed at 8,471.02, up 3.26 percent from the previous session when it plunged nearly 10 percent. It climbed as high as 8,577.52 during the session, but turned lower in the afternoon and briefly fell to 8,080.99. It later resumed its upward trend and closed higher.
Despite weakness in U.S. semiconductor stocks, investor sentiment was boosted by news that Samsung Electronics is close to announcing a 90 trillion won ($58.2 billion) share buyback. Its shares rose 9.84 percent to close at 340,500 won, reclaiming the top spot by market capitalization. SK hynix also rose 0.98 percent to close at 2,580,000 won, but failed to close the gap with Samsung Electronics.
Market laggards also advanced, supported by bargain-hunting.
The pharmaceutical and biotech sector rebounded on expectations surrounding the 2026 BIO International Convention in the U.S. Samsung Biologics and Celltrion gained 8.8 percent and 7.6 percent, respectively.
The oil refining and chemicals sectors also rose, with S-Oil and Lotte Chemical among the notable gainers, advancing 5.71 percent and 6.1 percent, respectively.
Market watchers said volatility is likely to continue in the second half of 2026.
"We do not expect this (Tuesday's plunge) to be the start of a bear market, but rather a needed breather looking for more clarity on policy and the AI story," Joon Seok, Korea equity strategist at Morgan Stanley, said in his latest note. "We reiterate our view that the second half of 2026 will be rockier than the first half, with our KOSPI target of 9,000 within a wide bull (10,500) and bear (6,500) range."
The VKOSPI, which measures the KOSPI's annualized volatility, currently stands at 95.45 percent, marking a record high, according to Daishin Securities. Converted into monthly and daily volatility, this corresponds to approximately 27.55 percent and 6.01 percent, respectively, indicating that volatility in the Korean stock market has intensified further, it explained.
The secondary Kosdaq rose modestly, closing at 909.31, up 2 percent. The won-dollar exchange rate stood at 1,541.8 won, with the Korean currency weakening by 2.7 won.