Korea Weekly Kickstart KOSPI declined by 2 despite foreign inflows and Alphabet's AI capex boost

Portfolio Strategy Research 24 July 2026 | 11:45PM SGT

KOSPI declined by 2% despite foreign inflows and Alphabet’s AI capex boost

n KOSPI declined by 2% despite foreign inflows and on a market-cap-adjusted basis. Despite heightened Timothy Moe, CFA | Alphabet’s AI capex boost. The Construction, Software volatility, retail margin calls as a percentage of Goldman Sachs (Singapore) Pte

and Telecom sectors outperformed this week, while receivables fell to 0.7% as of July 23. In addition, John Kwon | Securities, Auto and Insurance sectors underperformed brokerage receivables have recently declined to KRW Goldman Sachs (Singapore) Pte the most (Exhibit 9). 0.9trn. Amid recent market weakness, Korea leveraged n Foreign investors continued to buy the KOSPI market, ETF AUM has fallen from a peak of US$53bn to driven by inflows for KOSPI Tech (Exhibit 36). US$26bn, with leveraged exposure now equivalent to 2.1% of market free float. n KOSPI 12m-forward EPS was revised down by -0.4%. The Chemicals sector saw the strongest upward earnings n Foreign Flows, Positioning and Short-Selling revisions, while the Auto sector was revised down the Activities: As investors seek opportunities amid recent most this week (Exhibit 23). market weakness, the KOSPI has recorded foreign inflows for two consecutive weeks. However, despite n The KRW strengthened 1.6% vs. USD this week. It also this recent improvement, the market continues to face strengthened by 2.5% vs. JPY and 2.1% vs. EUR. significant foreign outflows. As a result, foreign n The latest Korea Equity Risk Barometer (GSSRKERB ownership in the KOSPI semiconductor sector remains Index) is at -1.1, staying in a risk-averse territory. light, at nearly -2 standard deviations versus historical levels. Over the past month, hedge funds have been Charts of the Week: Korea: Retail Margin Loans and taking profits in Japan, Taiwan, and Korea, while China Leveraged ETFs; Foreign Flows, Positioning and has benefited from some rotation buying. Korea has Short-Selling Activities also begun to see a rebound in interest over the past n Retail Margin Loans and Leveraged ETFs: As recent one to two weeks. Amid the recent market weakness, market volatility has driven deleveraging among retail short-selling balances and trading activity have also investors, retail margin loan balances have declined from declined meaningfully. a peak of US$25bn to US$22bn, while remaining at 0.5%

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Goldman Sachs Korea Weekly Kickstart

Charts of the week: Retail Margin Loans and Leveraged ETFs 3

Charts of the week: Foreign Flows, Positioning and Short-Selling Activities 4

Valuation discount relative to Global and Asia regional peers 13

Currency, rates and commodities 16

Korea ERB, Credit and Market Technicals 17