KOSPI Flat Amid 'Tax Reform Uncertainty'... Volatility Expected to Increase

KOSDAQ Trades Firmly Higher
Individuals Remain Sole Net Buyers

The KOSPI is showing weakness on the 4th. After last week's "Black Friday," which saw a sharp drop due to disappointment over the government's tax reform plan, investor caution is expected to remain strong this week.

As of 9:30 a.m. on this day, the KOSPI is down 0.04% from the previous trading day at 3,118.22. The KOSPI opened at 3,114.27, down 5.14 points (0.16%).

As the KOSPI, which had plunged just before the reporting point, attempts to rebound, the KOSPI and the won/exchange rate are displayed on the monitor in the dealing room of Hana Bank in Jung-gu, Seoul on the 4th. On this day, the KOSPI opened at 3,114.27, down 5.14 points (0.16%) from the previous trading day, showing a slightly weak trend. The won/dollar exchange rate started at 1,390.0 won, down 11.4 won, and the KOSDAQ index began at 773.83, up 1.04 points (0.13%). August 4, 2025 Photo by Jo Yongjun

While individual investors and institutions are net buyers of 59.7 billion won and 30.3 billion won, respectively, foreign investors are net sellers of 92 billion won.

Among the top market cap stocks, performances are mixed. Samsung Electronics is up 0.73%, but SK Hynix is down 0.97%.

Shares of shipbuilding companies, which played a major role in tariff negotiations with the United States, are weak. HD Hyundai Heavy Industries and Hanwha Ocean are down 3.46% and 4.09%, respectively.

On the other hand, Doosan Enerbility is up 3.09%. KB Financial Group is also strong, rising 1.98%.

The KOSDAQ is trading at 777.65, up 4.98 points (0.64%) from the previous day. While individuals are net buyers of 35.6 billion won worth of stocks, foreigners and institutions are net sellers of 31.7 billion won and 2.5 billion won, respectively.

Top market cap stocks on the KOSDAQ are also mixed.

Alteogen is up 1.87%, Peptron is up 3.04%, and Legochem Bio is up 3.85%. EcoPro BM and EcoPro are rising by 0.47% and 0.52%, respectively.

On the other hand, HLB is down 0.54%, and Pharmaresearch is down 0.73%.

In the Seoul foreign exchange market, the won-dollar exchange rate is trading at 1,388.5 won per dollar, up 0.2 won (0.01%) from the previous day.

Han Jiyoung, a researcher at Kiwoom Securities, said, "We expect continued market volatility due to the aftershocks of the U.S. employment shock on Friday, the U.S. July ISM Services PMI, the earnings of major U.S. AI companies (such as AMD and Palantir), domestic corporate earnings (such as Hyundai Rotem, LIG Nex1, and NAVER), and uncertainty over the domestic tax reform plan."

He particularly explained, "Along with concerns about reciprocal tariffs, the controversy over the tax reform plan?which was cited as a cause of last Friday's market crash?is also expected to persist. Although last week's plunge was excessive and a technical rebound is possible, uncertainty over the tax reform plan is likely to continue driving volatility this week."

This content was produced with the assistance of AI translation services.