KOSPI Surpasses 6,000 Amidst Shifting Investor Sentiment

South Korea’s benchmark KOSPI index recently exceeded 6,000 points for the first time in its history, driven by a resurgence of individual investor participation and a pullback from riskier assets like cryptocurrency, and U.S. Stocks. This shift in investment patterns signals a potential return to the domestic stock market, reminiscent of the “Donghak Ant Movement” seen during the early stages of the COVID-19 pandemic.

Individual Investor Surge

As of February 20th, 2026, individual investors had purchased 21.8293 trillion won in the South Korean stock market, according to the Korea Exchange. This figure is poised to surpass the all-time high of 22.3384 trillion won recorded in January 2021, when retail investors stepped in to support the market during a period of foreign and institutional selling pressure. With seven trading days remaining in February, analysts predict that net purchases could exceed 30 trillion won, marking a new historical peak.

Capital Rotation: From Crypto and US Stocks to KOSPI

The influx of capital into the KOSPI appears to be correlated with waning interest in other investment vehicles. Transaction volumes at the five major domestic cryptocurrency exchanges have decreased by more than 30% compared to the previous month, as Bitcoin and other cryptocurrencies experience price stagnation.

Similarly, net purchases of U.S. Stocks by domestic investors have significantly declined. As of February 19th, 2026, net purchases totaled only $69 million (approximately 103.3 billion won), a substantial decrease from the $5 billion (7.53 trillion won) and $4 billion (6.26 trillion won) recorded in January and February 2025, respectively. The total value of U.S. Stocks held by Korean investors, often referred to as “Seohak ants,” has likewise decreased from $163.9 billion (245 trillion won) last month to $160.9 billion (241 trillion won).

Shifts in Deposits and Loans

The trend extends beyond asset allocation, with shifts observed in deposit and loan activity. Term deposits at the five major banks decreased by 2.7 trillion won to 944 trillion won as of February 5th, 2026, whereas demand deposits—funds readily available for investment—fell by 8.6 trillion won. This suggests a move away from traditional savings accounts towards investments offering potentially higher returns.

Household loans have also increased, with a net increase of 684.7 billion won at the five major banks as of February 12th, 2026. While mortgage loans decreased due to government real estate regulations, credit loans surged by over 1.4 trillion won. Notably, the balance of personal negative bank accounts (Matong), used for investment purposes, increased by 1.3 trillion won this month alone – the largest increase in five years and three months, since November 2020.

Looking Ahead

Experts anticipate that this trend of returning investment towards the domestic stock market will likely continue in the medium to long term. The KOSPI’s recent performance, coupled with shifting investor preferences, suggests a renewed confidence in the South Korean economy and its equity market.