South Korea's KOSPI rises on AI investment optimism as investors split on market direction

The KOSPI opened above the 6,700 level on July 27, pushed higher by expectations that Naver will expand its global AI investments and by strong net buying from individual investors. The index gained about 0.5 % to 6,728, while leading chips makers Samsung Electronics and SK Hynix posted modest gains.

Data from the Korea Exchange show that individual investors bought roughly 75 trillion won of shares, whereas foreign investors and institutional funds sold net amounts of 6.5 trillion won and 1.1 trillion won respectively. A separate analysis of the month’s trading reveals a stark contrast: locals tend to sell on days the index rises and buy on days it falls, while foreign investors mostly follow the index’s direction, though they switched to net selling after the KOSPI passed the 7,000 mark.

Market participants are awaiting a series of earnings releases from Samsung, SK Hynix and major U.S. tech firms, as well as the upcoming Federal Open Market Committee meeting and the impact of recent oil‑price spikes on South Korean inflation. The Bank of Korea has signaled that further rate hikes are possible if price pressures persist. Meanwhile, the KOSDAQ index recovered from a sharp dip, climbing to around 760 points on net buying by individuals and institutions, even as foreign investors remained net sellers.