South Korea KOSPI Market Volatility Report — 2026-05-24

1. KOSPI Market Indicators and Flow

• KOSPI Index: On May 22, 2026, the KOSPI opened at 7,873.12, up 57.53 points (0.74%) from the previous day, and climbed as high as 7,886.64 (+0.91%) during the session. It did experience some volatility, dipping to a low of 7,792.65 (-0.29%) at one point.

• Foreign Investor Flow: Despite a "selling storm" where foreign investors offloaded approximately 930 billion won worth of shares right at the opening bell, the index managed to finish the day in positive territory.

• 52-Week Range: Over the past 12 months, the KOSPI has fluctuated between 2,588.09 and 8,046.78, recording a volatility rate of approximately 201.33%.

1 sources

mt.co.kr

mt.co.kr

2. Key Drivers of Today’s Volatility

① Massive Foreign Net Selling Foreign investors triggered a 930 billion won sell-off at the start of the session. This served as the primary driver of volatility, causing the index to dip into negative territory during the day despite its positive opening.

② Noise Surrounding U.S.-Iran Negotiations Conflicting news regarding negotiations between the U.S. and Iran throughout the day kept investor sentiment unstable. This issue also increased volatility in the U.S. markets; however, the domestic market maintained its strength, led by key sectors like semiconductors.

③ Continued Strength in Semiconductors Following the momentum in the semiconductor sector in U.S. markets, the domestic market saw sustained strength in semiconductors and large-cap stocks. The KOSPI showed a quick recovery from the previous day’s sharp decline.

3. Macro Factors and Economic Indicators

① Upward Pressure on the USD/KRW Exchange Rate As of May 22, 2026, the USD/KRW exchange rate stood at 1,520.06 won, a 1.03% increase from the previous trading day. The won has weakened by 2.59% over the past month and is down 11.30% over the last 12 months.

② Link Between Won Depreciation and Foreign Selling The fact that the USD/KRW exchange rate has settled back into the 1,500 won range is seen as a factor increasing the burden of foreign selling. In a climate of a weakening won, foreign investors often face a scenario where gains in the domestic stock market are offset by currency losses.

③ USD/KRW 52-Week Range Over the past year, the USD/KRW exchange rate has fluctuated between 1,347.07 and 1,538.45, with approximately 3.10% volatility over the year.

4. Summary and Investor Notes

The KOSPI confirmed its underlying strength by closing higher, thanks to the rally in the semiconductor sector, despite massive foreign sell-offs and noise regarding U.S.-Iran negotiations. However, with the USD/KRW exchange rate climbing to the 1,520 level, concerns over capital outflows remain, making the exchange rate a critical variable for short-term market flow.

Investors should keep a close eye on progress in U.S.-Iran negotiations, whether the exchange rate will remain fixed above 1,500 won, and the potential for a shift in foreign investor sentiment.