Why is the KOSPI index falling while KOSDAQ is rising?

The KOSPI is impacted by a weak Korean won and global caution, whereas the KOSDAQ is supported by institutional buying and strong performance in sectors like biotech.

What is causing the Korean won to weaken?

The article suggests continued weakness in the Korean won, with the dollar-won exchange rate around 1,470, hindering foreign capital inflow.

Which sectors are performing well on the KOSDAQ?

Biotechnology, secondary batteries, and robotics are among the sectors showing strength on the KOSDAQ, driven by institutional investment.

Home / Business and Economy / KOSDAQ Climbs on Institutions, KOSPI Dips on Won Woes

KOSDAQ Climbs on Institutions, KOSPI Dips on Won Woes

1 Dec, 2025

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Summary

KOSPI index declines, KOSDAQ index shows upward momentum.
Won's weakness and global caution impact Korean market negatively.
Institutional buying drives KOSDAQ, while foreign selling affects KOSPI.

KOSDAQ Climbs on Institutions, KOSPI Dips on Won Woes

The South Korean stock market presented a mixed performance on December 1st, 2025. The KOSPI index struggled, erasing early gains and trading below the 3,900 level. This downturn was primarily influenced by a persistently weak Korean won, with the dollar-won exchange rate hovering around 1,470, which dampened foreign capital inflow.

In contrast, the KOSDAQ index exhibited relative strength, moving above 920 points. This upward movement was significantly supported by substantial net buying from domestic institutions. Key sectors such as biotechnology, secondary batteries, and robotics saw notable gains, indicating targeted investment interest.

Despite the positive institutional activity on the KOSDAQ, the overall market sentiment remained cautious, partly due to a decline in the Japanese stock market. Companies like EcoPro saw surges, while cybersecurity firms benefited from a major data leak incident, highlighting specific growth areas within the KOSDAQ market.