Despite concerns over U.S. private credit stress and the Middle East geopolitical crisis, the KOSPI topped 5,700 on the 20th, extending its rally.

As of 9:29 a.m., the KOSPI was trading at 5,719.04, up 41.79 points (0.74%) from the previous session. After opening at 5,696.89, up 19.64 points (0.35%), the index moved above 5,700 early in the session and continued higher.

Although Samsung Electronics and SK Hynix, which had surged the previous day, paused on profit taking in memory semiconductors, Jo-Bang-Won (shipbuilding, defense, and nuclear power), as well as financials, brokerages, holding companies, and domestic demand plays, are rising and lifting the index. With the third round of amendments to the Commercial Act imminent, the move is seen as a result of policy effects including the separate taxation of dividend income.

Among large-cap names, Doosan Enerbility (6.4%), Hanwha Aerospace (5.92%), KB Financial (1.38%), HD Hyundai Heavy Industries (2.26%), and Mirae Asset Securities (1.7%) are advancing. Hyundai Motor (-0.19%), LG Energy Solution (-0.5%), and SK Square (-2.83%) are weaker.

Foreign investors are net sellers of about KRW 280.0 billion, while individuals and institutions are net buyers of about KRW 170.0 billion and KRW 128.0 billion, respectively, supporting the index.

The KOSDAQ, which surged more than 4% the previous day, triggering a buy-side sidecar on the back of foreign net purchases, is falling as foreign investors turn net sellers of around KRW 100.0 billion today. The KOSDAQ is trading at 1,153.18, down 7.53 points (0.65%) from the previous session.

Amid foreign net selling and spillover from the Middle East geopolitical crisis, the won-dollar exchange rate opened at 1,451 won per dollar in the Seoul FX market, up 5.5 won from the previous session, pushing above the 1,450 level.