KOSPI holds steady at 6,830 amid global tensions and sharp rise in US Treasury yields... Bank non-performing loans at 8-year high
1. Domestic Stock Market Trends
According to KRX data, the KOSPI index recorded a short-term high of 6,977.94 points on August 14, 2026, followed by a downward adjustment, and closed at 6,835.80 points as of September 1, 2026.
Looking at supply and demand by investor type, on September 1 alone, foreigners recorded net purchases of -496.84 billion won, institutions recorded -628.605 billion won, and individuals recorded -540.203 billion won (negative values indicate net selling), showing a collective selling trend. Other corporations entered with buying support, helping to support the index.
The KOSDAQ index closed at 821.25 points on September 1, down from the previous day. Individuals made net purchases of 43.89 billion won, but were overwhelmed by selling pressure from foreigners (-155.3 billion won) and financial investors (-226.5 billion won). The KOSDAQ market is showing a 'dead cat bounce' pattern where the index is rebounding while trading volume has decreased to one-third of the level three months ago throughout August.
2. Global Macroeconomy and Overseas Market Trends
As the military confrontation between the United States and Iran prolongs, concerns about global energy supply disruptions have pushed West Texas Intermediate (WTI) prices to break through $90 per barrel. Amid inflation concerns, US 10-year Treasury yields have reached new highs since January 2025. Despite stabilization efforts by US Treasury Secretary Scott Bessent, Treasury yields are facing additional upward pressure, leading to the New York major index futures (ES=F -0.69%, NQ=F -1.28%, YM=F -0.77%) all showing weakness.
3. Domestic Major Companies and Credit Rating Trends
The non-performing loan balance in the domestic banking sector reached 18.9 trillion won as of the end of June this year, the highest level in 8 years, due to factors such as an increase in corporate loan defaults. The Financial Supervisory Service noted that while financial soundness is generally sound, proactive management is needed.
According to Korea Ratings, the corporate bond credit ratings for major commercial banks such as KB Kookmin Bank, Shinhan Bank, Woori Bank, and Hana Bank, as well as regional banks like IM Bank and Busan Bank, have been maintained at AAA(Stable). However, the outlook for Dongwha Enterprise's corporate bonds (SB, PP) has been revised to 'Negative' from previous ratings, suggesting the need for monitoring of future financial soundness.
4. Sources and Data Limitations
The data presented in this briefing is based on information from KRX (Korea Exchange), Korea Ratings, and foreign media reports. The collected information is a snapshot of past data as of 2026-09-02 and may not immediately reflect real-time market changes, and may contain errors or omissions. This document is intended solely for the objective transmission of information and should not be interpreted as investment advice or a recommendation of financial products under any circumstances.