Korea Weekly Kickstart KOSPI declined marginally amid volatility triggered by the global bond yields and foreign outflows

Portfolio Strategy Research 22 August 2026 | 1:08AM SGT

KOSPI declined marginally amid volatility triggered by the global bond yields and foreign outflows

n KOSPI declined marginally amid volatility triggered by FCF. Following SK Hynix’s strong buyback Timothy Moe, CFA | the global bond yields and foreign outflows despite announcement, aggregate buyback activity across the Goldman Sachs (Singapore) Pte

strong buyback announcement. The Insurance, Tech and Korean equity market reached a record high. Recent John Kwon | Retail sectors outperformed this week, while Machinery, buyback initiatives, together with the Commercial Act Goldman Sachs (Singapore) Pte Shipbuilding and Auto sectors underperformed the most amendment, have also accelerated treasury share (Exhibit 10). cancellations, driving the value of treasury shares n Foreign investors turned to sell the KOSPI market, driven cancelled in 2026 to an all-time high. Over the past by outflows for KOSPI Tech (Exhibit 37). several years, buyback activity has been led primarily by the information technology and financial sectors. n KOSPI 12m-forward EPS was revised up by +1.4%. The Furthermore, median post-buyback announcement Insurance sector saw the strongest upward earnings returns have improved relative to the previous three revisions, while the Leisure sector was revised down the years. Based on current consensus estimates and stated most this week (Exhibit 24). shareholder return policies, both Samsung Electronics n The KRW strengthened 2.2% vs. USD this week. It also and SK Hynix are well positioned to deliver attractive strengthened 1.9% vs. JPY and 1.1% vs. JPY. total shareholder return yields in the current and next n The latest Korea Equity Risk Barometer (GSSRKERB fiscal years. Index) is at -0.7, falling into a risk-adverse territory. n Hedge Fund Flows and Mutual Fund Positioning : From a hedge fund positioning wise in the region, net Charts of the Week: Buy Back Activities Pulse Check; selling was led by Korea and Japan, followed by Taiwan, Hedge Fund Flows and Mutual Fund Positioning and partially offset by buying in China; Japan remains n Buy Back Activities Pulse Check : This week, SK Hynix the only net-bought market YTD, while Korea is the announced plans to accelerate its KRW40tn share most net-sold market in the region. Korea led the repurchase and cancellation program, while raising its selling with long sales exceeding short sales 1.5 to 1. shareholder return commitment to more than 50% of Net allocation declined to 4.2% (55th %ile1-year, 91st

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Goldman Sachs Korea Weekly Kickstart

Charts of the week: Buy Back Activities Pulse Check 4

Charts of the week: Hedge Fund Flows and Mutual Fund Positioning 6

Valuation discount relative to Global and Asia regional peers 14

Currency, rates and commodities 17

Korea ERB, Credit and Market Technicals 18