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SEOUL — The South Korean benchmark KOSPI reversed early losses on Wednesday, briefly reclaiming the 4,900 level as significant inflows from foreign and institutional investors offset geopolitical concerns surrounding the "Greenland Situation."

Market Performance Overview
As of 11:00 AM KST, the KOSPI stood at 4,891.48, up 5.73 points (+0.12%) from the previous session. After a shaky start that saw the index dip to 4,807.13, the market trended upward, peaking at 4,910.22 mid-morning.

Institutional Investors: Net buyers of 301.8 billion KRW
Foreign Investors: Net buyers of 272.9 billion KRW
Retail Investors: Net sellers of 646.6 billion KRW
Automotive Surges on "Physical AI" Optimism

The session's standout performers were automotive giants Hyundai Motor (+11.27%) and Kia (+5.86%). Investor sentiment was bolstered by the unveiling of the next-generation humanoid robot, 'Atlas.' The rise reflects growing anticipation for Hyundai’s "Physical AI" business, as the company prepares to integrate humanoids into its manufacturing plants. Analysts suggest that 24-hour humanoid labor will significantly enhance operational efficiency and reduce long-term costs compared to traditional labor.

Other gainers included Samsung Electronics (+2.75%) and Korea Electric Power Corp (KEPCO) (+4.28%). Conversely, the energy and defense sectors saw pullbacks, with Doosan Enerbility (-3.36%) and Hanwha Aerospace (-1.68%) trading lower.

 
KOSDAQ Dragged Down by Bio-Sector Disappointment
In contrast to the KOSPI’s resilience, the tech-heavy KOSDAQ plummeted 2.86% to 948.42. The decline was primarily driven by heavy selling from foreign and institutional investors, who offloaded a combined 626 billion KRW.

The slump was centered on the biotech sector. Alteogen, the KOSDAQ’s top-cap stock, crashed 19.54%. The sharp decline followed the announcement of a 410 billion KRW licensing deal with GSK’s subsidiary, Tesaro. While the deal includes a 29.5 billion KRW down payment, it fell short of market expectations for a "multi-billion dollar" (trillion KRW) contract, triggering a massive sell-off.

 
Presidential Outlook on Exchange Rates
The Korean Won showed signs of stabilizing after a volatile opening. The USD/KRW exchange rate was trading at 1,471.3 as of 11:00 AM, down from its opening high of 1,480.

During a New Year’s press conference held today, President Lee Jae-myung addressed the currency volatility.

"According to the relevant authorities, the exchange rate is projected to stabilize around the 1,400 won level within the next month or two," President Lee stated. "We will continue to identify and deploy all available measures to ensure currency stability."

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