The rally to record highs is accelerating in South Korea’s stock market, and short-term trading is rising with it. The KOSPI on the 27th climbed past 6,600 for the first time, and April turnover is nearing 40% as investors rapidly rotate in and out of shares.
According to the Korea Exchange, the KOSPI closed at 6,615.03, up 139.40 points, or 2.15%, from the previous session. The index also broke above 6,600 during the session, putting the 7,000 level within sight.
By investor type, foreigners and institutions were net buyers, purchasing 890.5 billion won and 1.1015 trillion won, respectively. Retail investors were net sellers of 1.9763 trillion won, a sign of heavy profit-taking. In recent sessions, retail investors have often sold into strength and bought on dips.
That pattern is reflected in turnover, a measure calculated by dividing trading volume by the number of listed shares. Higher turnover indicates more frequent changes in ownership — often associated with day trading. As of the 27th, April turnover stood at 37.63%, meaning about 3.7 out of every 10 listed shares changed hands over the month. It was below March’s 40.55% but above January’s 31.29% and February’s 34.08%. With three trading days left in the month, April could still surpass March.
Daily data also point to brisk short-term trading. This month, turnover exceeded 2% on six sessions: the 2nd (2.47%), 16th (2.36%), 23rd (2.27%), 10th (2.10%), 17th (2.10%) and 15th (2.05%). Most of those sessions — except the 2nd and 17th — ended higher, suggesting momentum buying and profit-taking were both active during the upswing.
Turnover jumped not only on the 2nd, when investor sentiment weakened after U.S. President Donald Trump made hard-line remarks toward Iran, but also on the 16th, when the index first broke above 6,200 after the outbreak of the Iran war. Similar moves were seen on the 23rd, when semiconductor strength lifted the index to around 6,470 and a fresh record, and on the 15th, when it settled above 6,000.
The surge in turnover suggests a market increasingly driven by short-term trades. Faster rotation can also amplify risk, especially when paired with leveraged bets. Kim Seok-hwan, an analyst at Mirae Asset Securities, warned that “the expansion of direct investment using leverage should be noted as it may be exposed to volatility risk going forward.”
* This article has been translated by AI.
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