KOSDAQ Index Surpasses 1,161: National Growth Fund Inflow and Market Analysis
The KOSDAQ index surged 4.99% to 1,161.13, driven by expectations of fund inflows from the National Growth Fund and massive foreign buying.
Key Drivers Behind the KOSDAQ Index 4.99% Surge
As of May 24, 2026, the KOSDAQ index demonstrated a powerful rally, closing at 1,161.13 points—a significant 4.99% increase from the previous trading day. This surge extends beyond a mere technical rebound, driven by the anticipated increase in broader market liquidity and massive buying volumes. The primary catalyst for this bullish market is the initial success of the newly launched 'National Growth Fund.' The fund generated an enthusiastic market response, selling out its allocations at major brokerages on the very first day. This sparked confidence in the imminent influx of large-scale policy funds into the KOSDAQ market, heavily stimulating overall investor sentiment.
Supply and Demand Dynamics and Sector Movements
The day's trading was dominated by synchronized net buying from foreign and institutional investors. A closer look at the supply and demand trends reveals a clear market direction:
- Foreign Investors: Massive net purchase of approximately 597.4 billion KRW
- Institutional Investors: Net purchase of approximately 288.0 billion KRW (primarily pension funds)
The intense buying pressure that persisted from the morning session triggered a buy sidecar in the KOSDAQ market, indicating strong upward momentum across the board. By sector, secondary battery stocks, which had previously undergone corrections, led the index higher. Furthermore, pharmaceutical and biotech companies, along with semiconductor materials, parts, and equipment stocks—bolstered by rising AI demand—showed broad strength, solidifying their roles as market leaders.
Implications and Outlook for Investors
It is crucial to note that the current upward trajectory of the KOSDAQ index is based on structural improvements in capital flows via policy funds, rather than being a one-off event. With the planned execution and injection of National Growth Fund capital into the market, a favorable environment for the valuation reassessment of robust small-to-medium venture companies and deep-tech stocks is highly likely to persist. Therefore, instead of reacting to short-term index volatility, investors should strategically consider increasing portfolio weightings in core sectors with solid fundamentals and anticipated direct policy benefits.