South Korea's stock market posted a significant recovery in Tuesday's trading (7/21/2026). The benchmark Korea Composite Stock Price Index (KOSPI) closed sharply higher by 231.68 points or 3.56 percent at 6,747.95, after fluctuating widely between 6,429.03 and an intraday high of 6,836.86 throughout the session.
The rebound in the main index was triggered by a recovery in global risk appetite, driving bargain hunting, particularly in the tech sector, which had previously undergone a deep correction. Easing pressure from unwinding leveraged positions and a stronger South Korean won against the US dollar also provided additional positive sentiment for market movement.
Foreign and institutional investors served as the primary drivers of the market's gain, securing net buy positions across large-cap stocks. Meanwhile, retail investors tended to capitalize on the rapid price increases to engage in profit-taking.
Semiconductor stocks led the market recovery following improved performance among US chipmakers. Tech giant Samsung Electronics recorded a significant surge in stock price thanks to foreign capital inflows, followed by rival SK hynix, which managed to recover part of its losses from the previous trading day.
In other sectors, transportation stocks such as flag carrier Korean Air and shipping firm HMM also posted gains as global economic recession fears eased. Automaker Hyundai Motor also finished in the green, while defense stock Hanwha Aerospace experienced a slight correction due to profit-taking following a rally in recent sessions.
