[Market Review] KOSDAQ’s Historic Surge—Institutional Buying Hits All-Time High Amid Digital Asset Hype (STO and Stablecoin)
On Friday, January 23, 2026, the South Korean stock market experienced a significant divergence in liquidity. While the KOSPI entered a consolidation phase near the legendary 5,000-point mark, the KOSDAQ stole the spotlight by surging +2.68% to 996.35. Driven by the single largest day of institutional net buying in history, the secondary market is now on the verge of the “Cheonsdaq” era. This rally was fueled by aggressive policy proposals from the ruling party to hit KOSPI 7,000 and KOSDAQ 3,000 through the institutionalization of digital assets.
1. Macro De-escalation: The ‘Greenland War’ Moves Under the Surface
The global trade anxiety that shook markets earlier this week began to subside as President Trump and European leaders signaled a move toward dialogue over confrontation.
- Avoidance of Extremes: While a final resolution on Greenland tariffs has not been reached, the threat of an immediate 200% tariff on European goods has cooled. Europe’s potential “economic bazooka”—the threat of offloading $8 trillion in U.S. assets—reportedly pressured Washington into a tactical pause.
- BOJ Stability: The Bank of Japan (BOJ) maintained its interest rate at 0.75%, as expected. Governor Ueda’s comments on stabilizing long-term rates helped calm the yen and provided a supportive backdrop for Asian equities.
2. Policy-Driven Fintech Surge: Stablecoins and STO
The most explosive move of the day came from the Fintech sector following high-level policy discussions between the President and the ruling party’s special committee.
- KOSDAQ 3,000 Project: The government officially proposed the utilization of Security Token Offerings (STO) and Won-based Stablecoins as core pillars to revitalize the KOSDAQ.
- Sector Explosion: Digital payment and fintech leaders hit the daily upper limit. Danal (064260) and NHN KCP surged +29.9%, while KakaoPay (+29.0%) and NAVER (+7.3%) saw massive inflows as they moved closer to integrating stablecoin technology into their platforms.
3. Sector Rotation: Bio-Rebound and the Space Frontier
As large-cap automotive and defense stocks took a tactical rest, capital rotated back into growth-heavy KOSDAQ leaders.
- Biopharma Recovery: Following the recent “Alteogen Shock,” a wave of bargain hunting hit the sector. Sam Chun Dang Pharm (000250) skyrocketed over 15%, while Alteogen (196170) and LigaChem Bio (141080) regained significant ground.
- New Space Economy: Discussions at the Davos Forum regarding the “New Space Economy” and rumors of SpaceX’s IPO lead-manager selection energized the aerospace sector. Spear (+16.1%) and HVM (+9.8%) led the gains.
4. Large-Cap Consolidation: Hyundai Rests, Hynix Reverses
The KOSPI giants, which have led the market vertically toward 5,000, faced heavy profit-taking from foreign investors.
- Hyundai’s Breath: Hyundai Motor (005380) and Kia closed lower for the second straight day as the 100% monthly surge triggered “sell-the-fact” institutional trades.
- Hynix’s Late Strength: Despite early weakness, SK Hynix (000660) turned positive in the final hour, acting as a critical buffer for the index as it stays near the 4,970 range.
- Robotics Shift: While Hyundai cooled, Rainbow Robotics (272410) rose +7.6% on expectations of its deep integration with parent company Samsung Electronics.
Institutional Conviction: Top 5 High-Momentum Tickers
Institutions recorded a historic buying spree on the KOSDAQ, focusing on stocks with direct ties to new policy-driven growth:
- Danal (064260): The primary beneficiary of the government’s push for STO and stablecoin legislation.
- Mirae Asset Securities (006800): Leading the brokerage rally (+15.2%) on record market trading volumes and Value-up expectations.
- Sam Chun Dang Pharm (000250): Capturing the massive rebound in the KOSDAQ bio-tech rotation.
- NAVER (035420): Re-rated as a digital asset powerhouse following the Dunamu merger and stablecoin news.
- Rainbow Robotics (272410): The institutional pick for the next leg of the robotics rally, focusing on the Samsung synergy.
Investor Strategy: The market has successfully transitioned from a “Large-cap Solo Play” to a healthy Sector Rotation. While the 5,000-point mark for the KOSPI remains a psychological battlefield, the record institutional buying in the KOSDAQ suggests that mid-cap growth is the new priority. Focus on “Oversold Mid-caps” with confirmed policy ties to the Digital Asset and Bio sectors. Maintain long positions in semiconductor leaders like SK Hynix for the long-term, but expect heightened volatility in the automotive sector as it digests recent vertical gains.
