South Korean healthcare stocks rise amid market downturn

South Korean healthcare stocks have shown resilience, rising significantly while major indices like the KOSPI and KOSDAQ experienced sharp declines. The KRX 300 Healthcare index rose 5.65% over a recent one-week period, contrasting with double-digit drops in broader markets.

Investors are increasingly viewing the healthcare sector as a defensive play amid concerns over AI investment overheating and weakness in global tech stocks. Additionally, anticipation surrounding the upcoming European Society for Medical Oncology (ESMO) congress in Madrid is driving interest, as several Korean biotech firms are expected to present clinical data for new drug candidates.

Key performers include Yuhan Corporation, Samsung Biologics, and Peptron, which all saw double-digit gains. Institutional investors have been active in the sector, net buying approximately 596.4 billion won, while individual investors have been selling.