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[https://www.chosun.com/english/market-money-en/2026/02/03/HUDAPTK6BBE2ZED76LRGLFIZE4/](https://www.chosun.com/english/market-money-en/2026/02/03/HUDAPTK6BBE2ZED76LRGLFIZE4/)
The 'Warsh shock (shock)' ended in just one day. The Kospi, which had plummeted over 5% the previous day and fell below the 5,000-point mark, surged over 6% on the 3rd, setting a record high based on the closing price. On that day, the Kospi closed at 5,288.08, up 6.84% (338.41 points) from the previous day. The increase exceeded the previous day’s decline of 274.69 points. The day’s gain was the largest since March 24, 2020 (8.6%), during the height of the 'Donghak Ant Movement'.
Institutions and foreigners led the index rebound by net buying approximately 2 trillion Korean won and 700 billion Korean won, respectively. Individuals net sold nearly 3 trillion Korean won. Lee Jaewon, a researcher at Shinhan Securities, said, “Foreigners and institutions, who had been net sellers for four consecutive trading days, switched to simultaneous net buying,” adding, “The nomination of Kevin Warsh as Federal Reserve Chair and the sharp drop in commodity prices, which increased volatility the previous day, merely served as an excuse for short-term profit-taking.”
Upward revisions in overseas investment banks’ forecasts also supported investor sentiment. JP Morgan, on the 2nd, local time, raised the base scenario target for the Kospi to 6,000 and the bullish scenario target to 7,500 in its 'Korea Equity Strategy' report. JP Morgan noted that while semiconductors have led the rally, profit growth is also continuing in sectors such as defense, shipbuilding, and power equipment, and governance reforms could lead to a re-rating of valuations.