Korea Weekly Kickstart KOSPI Posts Worst Month Since the GFC Despite Record Daily Gain Fueled by The Largest Single Day Fore...

Portfolio Strategy Research 1 August 2026 | 12:21AM SGT

KOSPI Posts Worst Month Since the GFC Despite Record Daily Gain Fueled by The Largest Single-Day Foreign Inflows

n Despite registering its largest single-day gain on monthly performance since the Global Financial Crisis Timothy Moe, CFA | record—fueled by the largest daily foreign inflow—the (GFC). KOSPI had the worst drawdown since the GFC Goldman Sachs (Singapore) Pte

KOSPI suffered its worst monthly performance since the while this level of drawdown posed encouraging John Kwon | Global Financial Crisis (GFC). The Tech, F&B and forward returns historically (Exhibit 3). KOSPI’s NTM P/E Goldman Sachs (Singapore) Pte Pharmaceutical sectors outperformed this week, while ratio has fallen to 4.7x, marking its lowest level since Construction, Telecom and Shipbuilding sectors 2001 and dropping even below the trough recorded underperformed the most (Exhibit 12). during the Global Financial Crisis (GFC). Even when n Foreign investors turned to sell the KOSPI market, driven factoring in GFC-level earnings downgrades and by outflows for KOSPI Tech (Exhibit 39). applying a multiple from the 2008 EPS trough, the index still presents a highly asymmetric, positively n KOSPI 12m-forward EPS was revised up by +0.9%. The skewed risk/reward profile. Despite a robust Return on Software sector saw the strongest upward earnings Equity (ROE) of 25%, the current Price-to-Book (P/B) revisions, while the Construction sector was revised ratio remains compressed, deviating significantly from down the most this week (Exhibit 26). its historical correlation. Excluding the top 2 companies, n The KRW strengthened 1.0% vs. USD this week. It also Korean equity valuations are exceptionally low in strengthened marginally vs. EUR but weakened 1.0% vs. absolute terms relative to their historical trading range JPY. and compared to regional peers. From a positioning n The latest Korea Equity Risk Barometer (GSSRKERB standpoint, despite a recent two-day window of foreign Index) is at -0.3, staying in a risk-averse territory. inflows, the KOSPI has experienced substantial foreign outflows year-to-date (YTD), leaving foreign ownership in the semiconductor sector notably light. Deleveraging Charts of the Week: KOSPI Drawdown Pulse Check is also well under way: the margin loan balance has n KOSPI Drawdown Pulse Check: Despite registering its declined from its peak of $25 billion to $22 billion, largest single-day gain on record—fueled by the largest stabilizing at approximately 0.5% of market daily foreign inflow—the KOSPI suffered its worst

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Goldman Sachs Korea Weekly Kickstart

Charts of the week: KOSPI Drawdown Pulse Check 4

Valuation discount relative to Global and Asia regional peers 14

Currency, rates and commodities 17

Korea ERB, Credit and Market Technicals 18