South Korea's Kosdaq has rebounded 18.72% from the start of August through Aug. 10, the strongest performance among major global stock indices, after nearly halving last month. The benchmark Kospi fell 4.48% over the same period, while strong buying pressure in the Kosdaq triggered buy-side circuit breakers (temporary curbs after sharp price moves) three times this month and lifted 87.03% of listed stocks. Institutional investors drove the move with net purchases of 1.22 trillion won, while foreign investors and retail investors were net sellers of 1.18 trillion won and 81 billion won, respectively. The rally was fueled by bargain hunting after an excessive drop, expectations for South Korean government measures to improve market fundamentals, and rotational buying after July 31 rules on single-stock leveraged ETFs (funds that amplify moves in one stock), which had been drawing demand away from the Kosdaq. Institutions concentrated purchases in biotech and in materials, components and equipment names such as Simmtech. Analysts said the short-term rally could continue, but argued that a durable move above 1,000 will depend on market normalization, policy execution in the second half of 2026, and the Kosdaq's ability to attract and retain stronger companies.