08/10 Korea Market Morning Briefing — Foreign Net Selling in 4 of Last 5 Sessions… Morgan Stanley "Memory Adjustment Over" vs Ongoing Profit-Taking
Market Trends
KOSPI: 6,258.77 (-0.60%)
Following the sharp drop in late July, KOSPI rebounded to a high of 6,598.26 on Aug 5, but declined for two consecutive sessions on Aug 6–7, slipping back to the 6,200 level. Trading volume stood at 24.7 trillion KRW, slightly down from Aug 5 (25.7 trillion KRW) but maintaining active trading. Compared to the July 30 low of 5,593.56, it remains up +11.9% in recovery.
KOSDAQ: 798.81 (-0.36%)
Slight adjustment within the 800 level. Following the Aug 3–5 rebound, it showed a sideways-to-declining pattern for 3 consecutive days. Trading volume decreased to 5.3 trillion KRW compared to Aug 5 (6.4 trillion KRW).
Investor Supply & Demand
KOSPI Investor Flows (08/07)
| Investor | Net Buy/Sell (100M KRW) |
|---|---|
| Foreigners | -8,651 |
| Institutions | +5,854 |
| Retail | +2,675 |
| Other Corporations | +122 |
Continued Foreign Selling: KOSPI foreign net sales were Aug 3 (-2.8220T KRW), Aug 4 (-371.6B KRW), Aug 6 (-3.2893T KRW), and Aug 7 (-865.1B KRW), showing net selling in 4 of 5 sessions. The sole net buying day on Aug 5 (+1.4464T KRW) is interpreted as a short-term rebound buy, which immediately turned back to selling. This pattern reflects persistent profit-taking pressure following the massive net buying on July 31 (+7.2410T KRW).
Institutional Defensive Shift: Institutions recorded 3 consecutive sessions of net selling Aug 3–5 (-1.9516T, -538.5B, -283.8B KRW), followed by -121.4B KRW on Aug 6, before shifting to +585.4B KRW net buying on Aug 7. This is interpreted as value buying returning near the 6,200 level.
KOSDAQ Investor Flows (08/07)
| Investor | Net Buy/Sell (100M KRW) |
|---|---|
| Foreigners | -2,522 |
| Institutions | -1,044 |
| Retail | +3,402 |
5 Consecutive Days of Foreign Net Selling in KOSDAQ: Foreigners sold net continuously from Aug 3 (-209.2B KRW) to Aug 7 (-252.2B KRW). Institutions also turned to net selling at -104.4B KRW on Aug 7 after 3 days. Retail investors supported the market with +340.2B KRW in net buying.
KOSPI 200 Futures
| Date | Close | Basis | Foreign Net Buy (Contracts) |
|---|---|---|---|
| 08/07 | 979.1 | +4.37 | +3,913 |
| 08/06 | 986.1 | +3.18 | +1,661 |
| 08/05 | 1,041.0 | +2.41 | -3,288 |
Foreigners bought net in K200 futures for two consecutive days on Aug 6–7 (+1,661 and +3,913 contracts). This appears to be a hedging/arbitrage strategy while net selling in cash equities. They are gradually rebuilding positions following large net sales on Aug 5 (-3,288 contracts).
Major DART Corporate Disclosures (08/07)
- SK Hynix (000660): Treasury Stock Disposal Decision — Signaling accelerated shareholder returns alongside Morgan Stanley's "End of Memory Adjustment" assessment
- HPSP (403870): Treasury Stock Disposal Decision
- Hyundai GF Holdings (005440): Treasury Stock Acquisition Decision
- MCNEX (097520): Treasury Stock Acquisition Decision (Correction Filing)
- HLB Therapeutics (115450): Paid-in Capital Increase & Convertible Bond Issuance Decision (Correction Filing)
- Woori Financial Group (316140): Write-down Additional Tier 1 Capital Securities Issuance Decision (Correction Filing)
※ There were no credit rating changes.
Macro & Foreign Exchange
Interest Rates (ECOS 2026-08-07)
| Category | Yield | Daily Change |
|---|---|---|
| 3Y KTB | 3.746% | +0.4bp |
| 10Y KTB | 4.208% | +1.3bp |
| Corp AA- (3Y) | 4.448% | +0.3bp |
| Corp BBB- (3Y) | 10.246% | — |
Credit Spreads: AA- 70.2bp, BBB- 650.0bp, 10Y-3Y KTB Spread 46.2bp. Treasury yields rose slightly day-over-day but maintain a downward trend compared to late July. The BBB- spread of 650bp remains similar to the July average (651.6bp).
USD/KRW Exchange Rate: 1,407.45 KRW (-14.85 KRW, -1.04%)
As of Aug 9, the rate stood at 1,407.45 KRW, appreciating 14.85 KRW from the previous session (1,422.30 KRW). From 1,428.50 KRW on Aug 3, the Korean Won has appreciated by about 21 KRW, maintaining a strengthening trend. The annual exchange rate volatility range remains relatively stable at 47 KRW.
Overnight Futures & Weekly Economic Calendar
US Index Futures (08/09 Snapshot)
| Futures | Price | Change |
|---|---|---|
| S&P 500 (ES) | 7,779.75 | +0.58% |
| Nasdaq (NQ) | 29,834.75 | +1.18% |
| Dow (YM) | 54,152.0 | +0.26% |
US futures showed strength over the weekend. In particular, Nasdaq futures surged +1.18%, signaling a tech rebound. The overnight setup for the Korean market is favorable.
Weekly Economic Calendar
· 08/11 (Tue): US Existing Home Sales
· 08/12 (Wed): US CPI (Key Event)
· 08/13 (Thu): US PPI · Initial Jobless Claims
· 08/14 (Fri): US Retail Sales · UMich Consumer Sentiment