The domestic stock market is being significantly shaken by massive foreign selling pressure. The KOSPI has moved to defend the 8200 level, but the KOSDAQ plunged more than 2% during the session, causing investor sentiment to freeze rapidly. In the market, there is a growing consensus that volatility response systems must be re-examined as the shock of short-term capital outflows repeats.

KOSPI Defends 8200 Level vs. KOSDAQ Plunge of Over 2% According to the Korea Exchange, as of 11:00 a.m. on the 28th, the KOSPI index recorded 8218.81, down 9.89 points (0.12%) from the previous trading day. Although it was pushed down to the 8165 level early in the session, it partially recovered its losses and is focusing on defending the 8200 level.

In contrast, the decline in the KOSDAQ market was relatively steep. The KOSDAQ index fell more than 2.7% during the session, dropping to the 1090 level. Profit-taking sell-offs poured in, centered on major theme stocks that had recently shown an upward trend, such as secondary batteries, robots, optical communication, and AI-related stocks.

Foreigners Net Sell for 15 Consecutive Trading Days... Over 2 Trillion Won in Net Selling The biggest variable in the stock market on this day was identified as foreign investment flows. Foreigners recorded over 2 trillion won in net selling in the main board market alone, continuing their 'selling dominance' trend for 15 consecutive trading days. On the other hand, individual and institutional investors collectively engaged in net buying, showing a trend of defending the index.

Inside and outside the market, there are concerns that if foreigner-driven program trading and large-scale capital movements continue to repeat, the volatility of the domestic stock market could expand further. In particular, it is pointed out that in the KOSDAQ market, where the proportion of individual investors is high, rapid surges and drops centered on specific theme groups can quickly shrink investor sentiment.

"Urgent Need to Improve Market Stability Mechanisms to Mitigate Volatility Shocks" Among investors, voices are growing louder that market stability mechanisms need to be refined. Rather than restricting foreign capital itself, the prevailing sentiment is that response systems capable of mitigating shocks during periods of rapid supply-demand imbalances and expanding volatility must be strengthened. Some also raise the need for enhanced monitoring of program trading, a review of volatility mitigation mechanisms, and improvements to market surveillance systems.

However, market experts diagnose that there is no need to simply interpret changes in foreign investment flows negatively. They explain that since global funds tend to move sensitively in response to U.S. interest rates, exchange rates, and geopolitical variables, an approach aimed at increasing market confidence and trading transparency is crucial.

Recently, the progress of ceasefire negotiations between the United States and Iran has also been cited as a major variable influencing global investor sentiment. Although expectations for an easing of tensions in the Middle East are partially reviving, risk appetite is still evaluated as being in an unstable state. The market believes that future changes in foreign investment flows, along with whether KOSDAQ volatility stabilizes, are highly likely to act as key variables in the short-term stock market trend.

[※ This article was written with the assistance of AI. The information provided in this article is intended to convey general financial market news and does not constitute investment solicitation or financial advice. The market is highly volatile, and losses resulting from investments are the responsibility of the investor.]