This is market analysis, not investment advice.
The KOSPI finished the week down 1.50%, at 6,687.21 from 6,788.88. But the number worth your attention isn’t the weekly change. On Monday, Tuesday and Thursday, all three investor groups the Korea Exchange tracks — retail, foreign and institutional — were net sellers. The index rose on all three days: +0.46%, +0.23%, +0.26%. When everyone the exchange counts as “the market” is selling and prices still rise, someone else is buying. For at least Monday and Tuesday, that someone sits in the KRX category called “other corporations” — and per analyst estimates cited in Korean press, that mostly means Samsung Electronics and SK Hynix buying their own shares. (Thursday’s buyer is not identified in our sources — more below.)
For EWY holders, in two lines. (1) The KOSPI’s −1.50% in won was roughly flat in dollars — about +0.1% — because the won strengthened 1.61% this week; if your EWY fell less than the index, that is why. (2) The bid under this market is not foreign money returning; it is two companies buying their own stock — Samsung and SK Hynix, the same two names that are about 41% of EWY — and press projections put that money running out around mid-October.
The scoreboard
| Aug 28 | Sep 4 | Week | |
|---|---|---|---|
| KOSPI | 6,788.88 | 6,687.21 | −1.50% |
| KOSDAQ | 838.41 | 813.50 | −2.97% |
| USD/KRW (Seoul 3:30 p.m.) | 1,372.5 | 1,350.4 | won stronger by 1.61% |
| KOSPI in dollar terms | — | — | +0.11% |
The dollar conversion multiplies the index ratio by the currency ratio; it is not a subtraction of one return from the other. EWY’s own US weekly close was not obtained this session — the fund’s actual print can differ by tracking, fees and the ADR-hour gap.
| Day | KOSPI | Retail · Foreign · Institutional | Other corporations |
|---|---|---|---|
| Mon 8/31 | +0.46% | all three net sold | net bought |
| Tue 9/1 | +0.23% | all three net sold | net bought |
| Wed 9/2 | −3.99% | foreign + institutions sold ~₩4tn (≈$3.0bn) | net bought |
| Thu 9/3 | +0.26% | all three net sold | net sold — buyer unidentified |
| Fri 9/4 | +1.64% | foreign +₩479.3bn · inst. +₩1,669.1bn · retail −₩3,722.4bn | — |
Directional data per KRX figures cited by Korean press; daily amounts for Aug 31, Sep 1 and Sep 3 were not obtained. So “the buybacks absorbed the selling” is solid for Monday and Tuesday, and an open question for Thursday — an observation, not a confirmed finding.
| Who | Amount | Label |
|---|---|---|
| Other corporations, net buy (Aug 24–Sep 4, 10 sessions) | ₩14,512.9bn ≈ $10.7bn | KRX, cited by press |
| Foreign net sell (Aug 28–Sep 3) | ₩3.5tn ≈ $2.6bn | KRX, cited by press |
| Institutional net sell (same span) | ₩3.7tn ≈ $2.7bn | KRX, cited by press |
| Samsung + SK Hynix buyback run-rate | ~₩1.6tn ≈ $1.2bn/day | analyst estimate (Yuanta), not a KRX breakdown |
Note 1 — Wednesday was the whole week, again
Strip out Wednesday’s −3.99% and the other four days sum to +2.60%. Last week the entire loss was Friday; this week it was Wednesday. Two straight weeks in which a single session decided the sign of the week. Wednesday’s drivers, per media: renewed US–Iran escalation, oil above $90, the US 10-year near 4.8%, and about ₩4tn (≈$3.0bn) of combined foreign and institutional selling.
Note 2 — KOSPI and KOSDAQ split again, this time by degree
Last week the two indexes went opposite ways (−1.79% vs +4.55%). This week both fell, but the KOSDAQ (−2.97%) fell twice as hard as the KOSPI (−1.50%), dropping Monday through Thursday before a +2.95% Friday bounce. (KOSDAQ’s Sep 2 close of 803.98 is back-computed from the next day’s reported change.)
Note 3 — how long does the corporate bid last?
Two layers here, and they are different kinds of facts. The filings: Samsung’s ₩15tn program window runs from Aug 24 to Nov 21, and SK Hynix’s ₩40tn buy-then-cancel program — it buys in the market first, then erases the shares, so the buying is real demand while it runs — from Aug 20 to Nov 19. The projection: at the current pace, Korean press and analysts estimate the money is spent by around Oct 8 for Samsung and Oct 16 for SK Hynix — an estimate, not a filing. As of Sep 2, about 73% of Samsung’s and 70% of SK Hynix’s planned volume remained, per press citing the companies’ filings. Either way, the floor under this market has a calendar attached — Samsung’s ₩110tn return being a range rather than a number is a story we covered when it was announced; this week is what the range looks like as daily order flow.
Note 4 — Friday’s “foreigners are back” was one day
Friday’s foreign net buy of ₩479.3bn (≈$355m) is about 14% of what foreigners sold over the prior five sessions (₩3.5tn ≈ $2.6bn). Media framed Friday as a twin foreign-institutional bid; on the week, foreigners were still net sellers. Their single biggest buy was SK Hynix at ₩527.2bn (≈$390m), per media tallies — one stock, one day. We don’t read that as a return.
What it means for Korea
To a US reader, “companies are the biggest net buyer of the market” is familiar — the S&P 500 buyback bid is old news. Not a perfect parallel: in the US that bid is spread across hundreds of companies year-round, so you never see it. In Korea, two companies are buying in a defined window, and the exchange publishes the category daily. That is why a sentence like “all three investor groups sold and the index rose” can be checked against data at all.
For an EWY holder this means two things. First, the fund’s 41% concentration in Samsung and SK Hynix now has a second face: the two stocks you own most of are also the marginal buyers of themselves. The floor under the index is their remaining buyback budget. Second, that floor has a date — mid-October by press projections, late November by the filings. What happens when it goes is the first question of the fourth quarter: does foreign money come back, or not?
Mr. Gat: “‘Foreigners are back’ was a Friday story. On Monday, Tuesday and Thursday nobody came — and the index rose anyway, because the companies bought. The real thing to watch this month isn’t the FOMC. It’s when the buyback money runs out.”
Next week (Sep 7–11)
Monday Sep 7 is US Labor Day — EWY and the ADRs sit still while Seoul trades; Monday’s Seoul move lands on Tuesday’s US open. No Korean holidays this week; Chuseok closes the KRX Sep 24–25, running into the weekend. The FOMC meets Sep 15–16. And the two running numbers: the pace of other-corporations buying (the buyback burn rate), and whether foreign flows flip on a weekly basis.
The wrap
The KOSPI’s −1.5% was one Wednesday; in dollars the week was roughly flat. Of the four up days, Monday and Tuesday were bought by the corporate bid — per analyst estimates, mostly Samsung and SK Hynix themselves — Thursday’s buyer is unidentified, and Friday was foreigners and institutions finally showing up. The filings run to late November; the money, by press estimates, runs out a month earlier.
FAQ
Why did EWY not fall as much as KOSPI this week?
KOSPI fell 1.50% in won, but the won strengthened 1.61%; in dollar terms the index was roughly flat (+0.1%). EWY’s own weekly print was not obtained this session.
Who bought Korean stocks this week if everyone sold?
The KRX’s “other corporations” category, which includes corporate buybacks, was the net buyer on nine of ten sessions from Aug 24 through Sep 4 — ₩14.5tn (~$10.7bn) in total. Analysts attribute roughly ₩1.6tn a day of it to Samsung and SK Hynix buying their own shares; that is an analyst estimate, not an official breakdown.
When do the buybacks end?
The filed windows run to Nov 21 (Samsung) and Nov 19 (SK Hynix), but at the current pace press projections put the funds exhausted around Oct 8 and Oct 16 respectively. About 73% and 70% of planned volume remained as of Sep 2, per press citing the filings.
Is the corporate bid good or bad for my EWY?
We don’t judge. What is checkable: it has supported the index on days everyone else sold, and it is scheduled to end. What follows it — returning foreign flows or a gap — is the fourth quarter’s open question.
Sources
KRX investor-flow data as cited by Financial News (Sep 4); Businesskorea, Asiae and Money Today (Sep 4 closes and FX); Yuanta Securities commentary via fnnews; buyback windows and projections via Herald Business, Edaily and EBN; iShares EWY holdings as of Aug 6 (update not obtained). Conversions at the Sep 4 Seoul close, ₩1,350.4.
This is market analysis, not investment advice.