[Aug 10, 2026 Korea Market Closing] KOSDAQ Surges 7% Starting 'Cheon-SDAQ' Engine; KRW 353 Trillion Mega Investment Project in Chungcheong and Yeongnam Revitalizes Korean Stock Market

Market Summary

On August 10, 2026, the Korean stock market drew cheers from investors as the KOSDAQ market set a historic record by surging 7% in a single day. The Mega Special Zone Special Act and the promise of massive funding announced by the Blue House instantly calmed market uncertainty. In addition, the rise in treasury bond yields added further momentum to the inflow of capital into the stock market.

• 📌 [KOSDAQ 7% Skyrocket and Leap to ‘Cheon-SDAQ’]: The KOSDAQ index jumped 7% in a single day, closing in on ‘Cheon-SDAQ’ (a market term anticipating the KOSDAQ breaking past 1,000 points).
• 📌 [Blue House’s Mega-Regional Investment Project]: The Blue House confirmed plans to invest KRW 246 trillion in the Chungcheong region and KRW 107 trillion in the Yeongnam region within this year, declaring it would lift regulations by enacting the Mega Special Zone Special Act (a special bill that drastically eases regulations and concentrates infrastructure such as power and water to vitalize regional economies).
• 📌 [10-Year, KRW 1 Trillion Polarization Resolution Project]: The Blue House will launch the ‘Shared Growth Project’ totaling KRW 1 trillion over the next 10 years to resolve K-shaped polarization (an imbalance where one side rises sharply while the other falls as the economy recovers), ensuring the benefits of economic recovery are evenly distributed.
• 📌 [Treasury Bond Yields Rising for 3rd Consecutive Day]: Treasury bond yields closed higher across all maturities, with the 3-year yield reaching 3.778% per annum, putting an end to the period of stabilizing, declining interest rates.

Combining the government’s strong mega-regional investment policy with rebounding interest rates, the Korean stock market broke out of its recent slump and staged a hot bull market.

Author’s Opinion & Investment Strategy

While KOSDAQ’s 7% surge is a highly unusual bullish signal in the history of the Korean stock market, beginner investors should maintain their composure rather than blindly jumping on the bandwagon. The top priority is to carefully examine the execution speed and whether the bill passes to see which sectors the massive policy funds are actually channeled into first.

• 💡 [Seeking Beneficiaries of Mega Special Zone Infrastructure]: Since companies related to infrastructure such as power, water, and transportation may be the first to benefit from the large-scale investments in the Chungcheong and Yeongnam regions announced by the Blue House, investors should keep an eye on sectors with actual value in these areas.
• 💡 [Utilizing Rational Pricing in the IPO Market]: The IPO market is showing a calm outlook, with HatchTech’s IPO price set at the lower end of its desired band at KRW 23,000. Thus, a safe approach centered on bubble-free IPOs remains valid.
• 💡 [Responding to Growth Stocks Based on Treasury Bond Yield Trends]: With treasury bond yields rising for three consecutive days to 3.778% per annum, short-term expectations for market interest rate cuts have slowed down. A conservative weight adjustment is recommended for growth stocks with high debt or those valued solely on future potential.
• 💡 [Maximizing Tax Benefits through ISA Accounts]: Investors should maintain their existing Individual Savings Account (ISA, an all-in-one basket account designed to receive tax benefits by holding various financial products) contracts while actively utilizing newly introduced benefits to build a solid foundation for long-term investing.

In a surging market, it is safer to avoid panic buying/blind trading (the act of hastily buying stocks following others without solid analysis) and focus on filling your portfolio with blue-chip stocks backed by thoroughly verified performance and clear policy benefits.

Deep Dive of News Channels

① Naver Pay Securities - Summary

The KOSDAQ index soared vertically by more than 7%, putting ‘Cheon-SDAQ’ within reach. Among retail investors, the necessity of maintaining existing tax-advantaged ISAs (Individual Savings Accounts) and tax reform moves received significant attention. Additionally, in the IPO market, HatchTech confirmed its IPO price at the lowest end of its desired band at KRW 23,000 and is proceeding with listing procedures. Meanwhile, how artificial intelligence (AI) technology is reshaping investment decisions for private equity funds (PEFs) and Coston Asia’s response trends were also heavily covered.

• 🔹 [KOSDAQ 7% Skyrocket and Restarting ‘Cheon-SDAQ’]: Breaking a long silence, the KOSDAQ market surged over 7% in a single day, shifting the investment sentiment of the entire Korean stock market.
• 🔹 [HatchTech Confirms IPO Price at KRW 23,000]: The highly anticipated IPO (Initial Public Offering, the process where a private company first offers its shares to the public to list on the stock market) candidate HatchTech set its offering price at the bottom of its desired band at KRW 23,000, receiving a cautious market evaluation.

• HatchTech: Confirmed its offering price at the lower end of the band at KRW 23,000 during the IPO process, completing final preparations to enter the stock market.
• Coston Asia: Attracted market attention with its innovative fund management amidst the shifting paradigm of PEF (Private Equity Fund, a fund that pools money from a small number of investors to invest in corporate equity) investment maps due to the rapid rise of artificial intelligence (AI).
• Asics OEM Partner: A company specializing in OEM (Original Equipment Manufacturing, contract manufacturing) for the global sports brand Asics, which became the center of attention due to news regarding its acquisition of the V-Flex Building located on Teheran-ro.
• Asics: Mentioned as expecting indirect benefits in the Korean stock market, thanks to its OEM partner’s real estate asset management activities and the brand’s strengthening of its solid market position.

② Yonhap News Business - Summary

Treasury bond yields, a barometer for financial markets, rose across the board for three consecutive days, signaling an upward trend in market interest rates. The 3-year treasury bond yield reached 3.778% per annum, bringing a temporary end to the bond market’s decline. In the policy sector, Seoul Mayor Oh Se-hoon once again declared his clear opposition to large-scale housing supply on the Yongsan Park site and plans to lift the greenbelt. Conflict over tax source restructuring between local governments has also intensified, worsening tensions over fiscal independence.

• 🔹 [Treasury Bond Yields Rise Across the Board for 3rd Consecutive Trading Day]: The bond market decline halted, showing a rebound phase with the 3-year treasury bond yield rising to 3.778% per annum.
• 🔹 [Seoul Mayor Oh Se-hoon Defends Development Regulations]: Actively opposed expanding real estate supply through housing construction on the Yongsan Park site and lifting the greenbelt, maintaining his stance on controlling the pace of development.

• Government Bonds (Treasury Bonds): Bonds issued by the government with its credit as collateral. Today, the 3-year yield surged to 3.778% per annum, exerting an indirect influence on liquidity in the Korean stock market.
• Seoul Metropolitan Government: Backed by Mayor Oh Se-hoon’s strong stance on preserving the greenbelt, caution was added to the short-term stock price volatility of development-related construction sectors.
• Yongin City: Yongin Mayor Lee Sang-il protested Gyeonggi Province’s abrupt tax source restructuring as ‘passing on fiscal responsibility,’ putting the city at the center of fiscal conflicts among local governments.
• Gwangju Military Airport: Became a beneficiary following the announcement of the government’s military facility relocation plan, which aims to temporarily transfer functions to another base by mid-2028 by presidential decree.

③ Maeil Business Newspaper - Summary

The Blue House announced a large-scale stimulus package for balanced national development and resolving polarization, sparking explosive market interest. It decided to invest astronomical amounts of KRW 246 trillion in the Chungcheong region and KRW 107 trillion in the Yeongnam region, and agreed to immediately begin enacting the Mega Special Zone Special Act. Furthermore, it promised to launch the KRW 1 trillion ‘Shared Growth Project’ over the next 10 years to prevent K-shaped polarization, which is an imbalance in income distribution. In the real estate market, analyses of the reconstruction landscape based on apartment age and generation-specific characteristics were actively shared.

• 🔹 [KRW 353 Trillion Mega-Regional Investment Project in Chungcheong and Yeongnam]: Centered on the Blue House Chief of Staff’s office, the government aims to pass a special law within this year to launch massive investments in power, water, and housing infrastructure in the Yeongnam and Chungcheong regions.
• 🔹 [10-Year Long-Term KRW 1 Trillion Shared Growth Project]: To address K-shaped polarization representing wealth and regional disparities, a national budget of KRW 1 trillion will be intensively allocated over 10 years.

• The Blue House: Directed the rise of the Korean stock market’s infrastructure sector today by allocating large-scale policy budgets to the Chungcheong and Yeongnam regions and declaring super-regional deregulation.
• People Power Party: Activated its Special Committee on Strengthening Organization to reorganize party units in about 30 regions, including Gangneung, signaling the beginning of political shifts.
• Democratic Party of Korea: Faced damage control as Representative Hwang Hee apologized for his imprudent remarks regarding ‘Bus House,’ which was proposed to help young people secure stable housing.
• Apartment Reconstruction Planning Task Force: Drew attention by scientifically assessing the profitability and reconstruction business landscape of 4th-generation apartments represented by NewJeans and Ive, alongside older conventional generation apartments.

Top 5 Key Companies of the Day

1. HatchTech: Took a cautious first step by setting its final IPO price at the lower end of its desired band at KRW 23,000. Amid the recent surge in tech stocks, investors’ attention is focused on its performance on listing day.
2. Coston Asia: A pioneering financial company that reorganized its PEF investment structure by preemptively reflecting the AI innovation trend. Based on its diversified investment map, it is demonstrating unique competitiveness in the financial sector of the Korean stock market.
3. Asics OEM Partner: A company dedicated to the contract manufacturing of Asics products, which are gaining attention due to the growing global demand for running shoes. It proved its real asset value enhancement by disclosing its activities regarding the V-Flex Building asset on Teheran-ro.
4. Seoul Metropolitan Government: By making clear its opposition to lifting the greenbelt and supplying large-scale rental housing on the Yongsan Park site, it put the brakes on speculative flows in short-term theme-based construction site development stocks.
5. The Blue House: South Korea’s top national control tower, which announced plans to enact the Mega Special Zone Special Act within this year and commence astronomical SOC (Social Overhead Capital) investments of KRW 246 trillion in the Chungcheong region and KRW 107 trillion in the Yeongnam region within this year.

Source & Disclaimer

• Source: Naver Pay Securities, Yonhap News Business, Maeil Business Newspaper
• This content represents a personal opinion and is for reference only.