[From the Field]Another Facelift for the Exchange—Capital Market Fever Spreads in Yeouido

(Seoul=Yonhap Infomax) Yo Been Noh—The Korea Exchange has once again revamped its “front door.” Passersby in the heart of Yeouido and commuters waiting at nearby bus stops are now greeted by a massive new banner covering the main façade of the Exchange’s headquarters.

The newly installed banner, unveiled the previous day, boldly proclaims in golden letters, “KOSPI Surpasses 4,000 for the First Time Ever,” underscoring the pride of South Korea’s capital markets. In fact, the KOSPI is currently leading the G20 with the highest rate of increase among major indices.

The first appearance of such a banner on the Exchange’s exterior dates back to last September, when the KOSPI hit a record high and the building’s outer wall was adorned to mark the milestone.

The previous banner featured a pole vaulter against a white background, accompanied by the phrase “KOSPI Hits All-Time High!” and an upward-trending candlestick chart, symbolizing hopes for further gains.

While that message focused on hope and challenge, the latest banner exudes a sense of achievement and confidence. The background has shifted to a deep navy, with golden lettering at the center, surrounded by fanfare and starlight motifs.

Some things, however, remain unchanged. The phrase “The capital market’s challenge toward the KOSPI 5,000 era continues” is still prominently displayed.

While the ultimate target remains 5,000, the Exchange now appears to be projecting a greater sense of confidence.

Market sentiment supports this optimism. The KOSPI set another all-time high the previous day, having recently broken through the 4,000 mark and quickly advancing past 4,100 and 4,200.

The current record-setting rally is nothing short of relentless. In October alone, the KOSPI surged nearly 20% (19.94%), with its annual gain now exceeding 70%.

There is a palpable shift in attitudes toward the challenge of reaching 5,000. As the index grows, the absolute point gains required for the same percentage increase become larger.

To move from 1,000 to 2,000, the KOSPI had to double. From 2,000 to 3,000 required a 50% rise, and from 3,000 to 4,000, a 33% increase. Now, only a 25% gain is needed to reach 5,000 from 4,000. This has fueled speculation that the 5,000 milestone may be within reach sooner rather than later.

Retail investors have played a particularly notable role in this rally. Despite selling pressure from foreign and institutional investors the previous day, individual buyers drove the index higher. Investor deposits rose from 81 trillion won ($61.2 billion) on the 27th to 83 trillion won ($62.7 billion) on the 28th, and have remained above 85 trillion won ($64.2 billion) since the 29th.

Retail investment in the KOSPI reflects growing trust in the market. Efforts by financial authorities and related institutions—including the Korea Exchange—to improve market systems and ensure fair trading environments have helped restore investor confidence.

Reflecting the market’s enthusiasm and momentum, the Exchange’s new banner has once again become a symbol of domestic investors’ expectations. There is hope that it will continue to evolve in line with the aspirations of the capital market.

ybnoh@yna.co.kr

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