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KOSPI +0.88% on Samsung buyback; KOSDAQ −4.63% as defense and power sectors rout — Korea Market Daily Wrap, Aug 21, 2026

The Silmari
A daily data newsletter on the Korean stock market — silmari, ‘a clue: the loose end that unravels the knot’
⑥ Final Edition 20:002026.08.21 Fri · No. 18Neutral (score 0.894) — vol20 at 93rd pctile, leverage-ETF share at 94th pctile; credit and short-surge inputs on reporting lag
⑥ Final Edition · published 20:00 KST · regular session confirmed at 15:30 KST
01 · VerdictRegular session confirmed 15:30 KST

Today’s Verdict

KOSPI +0.88% on Samsung buyback; KOSDAQ −4.63% as defense and power sectors rout

The KOSPI closed Friday, August 21 (2026) at 6,912.95, up +0.88%, as Samsung Electronics’ announcement of a ₩15tn share buyback for employee compensation — disclosed after the close — gave a tailwind to the two largest names; after-hours, Samsung Electronics was indicated lower on Nextrade Alternative Trading SystemKorea’s alternative trading venue (ATS) launched in 2026, operating pre-market, main, and after-market sessions alongside the KRX main board.NXT intraday data — available with a 20-minute delay — provide an early signal of after-hours positioning; today’s NXT snapshot showed Samsung Electronics −0.55% and SK hynix +4.32% after the main-board close..The KOSDAQ told a different story, shedding −4.63% to close at 801.94, with defense, power, and biotech stocks hit hard and decliners outnumbering advancers by nearly five to one.

Key points
01Samsung Electronics rose +3.87% and SK hynix +2.31%, together generating ₩15.13tn in turnover — over a third of total KOSPI volume — and masking broad market weakness where 683 issues fell versus 193 rising.
02Institutions were net buyers of ₩248.1bn on KOSPI today, extending a one-week net purchase of ₩2,405bn (excl. investment trusts) — but on KOSDAQ they net-sold ₩346.2bn, continuing a one-month pattern of withdrawal.
03Defense & Aerospace fell −7.4% as the sector’s one-week relative strength vs KOSPI stands at −9.9 percentage points, reversing part of a one-month gain of +20.1 pp.
04The crash-precursor score is 3/4: Advance-Decline RatioThe number of rising issues divided by the number of falling issues in a market on a given day; a reading below 1.0 means more stocks fell than rose.A low ADR alongside a positive index return signals that gains are concentrated in a small number of large-cap names — as occurred on KOSPI today (ADR 0.28, index +0.88%). signal active (US session −16.7% on July 28), short-surge flag active (SK hynix 5.0x surge on Aug 18); selling-acceleration and sentiment inputs are not triggered as of today’s confirmed data.
Where we stand — close · today · versus the past (each column carries its actual date)
IndexCloseToday1 week ago 08/141 month ago 07/221 quarter ago 05/226 months ago 02/201 year ago 08/21
KOSPI6,912.95+0.88%−0.93%+1.70%−11.91%+19.01%+120.04%
KOSDAQ801.94−4.63%−7.25%+6.77%−30.93%−30.51%+3.18%
02 · Prediction2 calls · posted 07:30 KST

Did our calls hold?

A window grading the morning’s calls against what actually happened

Morning call: KOSPI hit (P1 ✓), KOSDAQ missed badly (P2 ✗)

Two predictions were on the record for Friday, August 21 (2026): P1 called KOSPI +0.3% to +1.5% — the index settled at +0.88%, inside the band, verdict ✓.P2 called KOSDAQ flat (−0.5% to +0.5%); the index fell 4.63%, a miss of roughly four percentage points — verdict ✗.

Direction hit
1/2
50% · direction only
Magnitude hit
1/2
50% · scored on closing inside the band
Alert · 3 points
✓ Realised
3+ = crash alert · 2+ = caution (small sample)
Call ① KOSPIThe KOSPI is more likely to rise
Band +0.3~+1.5% · full day
Actual+0.88%· verdict ✓
Morning rationalePhiladelphia Semiconductor IndexA US equity index tracking the performance of major semiconductor design and equipment companies, widely used as a leading indicator for Korean chip stocks.SOX moves (particularly ≥0.5%) are tracked in The Silmari’s cross-follow model because Korean semiconductor names such as Samsung Electronics and SK hynix tend to react to SOX direction with a one-session lag.+0.53% Current upside probability 86% (n=28), Day 1 of foreign investor inflow shift, but Friday is peak foreign selling day + Jackson Hole caution limits gains
Call ② KOSDAQKOSDAQ is more likely to finish flat
Band -0.5~+0.5% · full day
Actual−4.63%· verdict ✗
Morning rationaleTesla -1.71% Robot signal weakening, low SOX correlation, biotech fundamentals positive but directional momentum limited

No sector-level or individual-stock directional calls were filed for today; the two market-level calls covered the scope of the morning edition.

03 · TraceKRX confirmed prices · times measured from minute bars

The day’s path

A window retracing where the index travelled from open to close

KOSPI charted a wide intraday range of 211.68 points (open 6,755.83, session low 6,742.44 at 09:01, session high 6,954.12 at 14:19) before closing at 6,912.95.

KOSPI open · high · low · close6,759.95 · 6,954.12 (14:19) · 6,742.44 (09:01) · 6,912.95
KOSDAQ open · high · low · close824.05 · 824.05 (09:00) · 795.57 (11:05) · 801.94
04 · Fund flowsIn Korean won · KRX

Who bought and who sold —4 investorgroups ×4periods

A window on how much foreign investors, retail investors, investment firms and pension funds each bought and sold

Institutions net-bought ₩248.1bn on KOSPI while retail sold ₩1,165.2bn — a split that mirrored the index’s Friday, August 21 (2026) close of +0.88%.

KOSPI net buying — today · 1 week · 1 month · quarter (in Korean won)
Investor groupToday1 Week 08.14~08.211 Month 07.22~08.21Quarter
Foreign investors−₩176.0bn+₩1.19tn+₩220.4bn−₩65.80tn
Retail investors−₩1.17tn−₩40.8bn−₩890.7bn+₩50.95tn
Pension funds+₩46.4bn−₩103.6bn+₩509.7bn−₩2.45tn
Investment firms+₩72.7bn−₩3.82tn−₩3.93tn+₩14.45tn
01

Institutions (aggregate) were the net buyers on the KOSPI today, taking in ₩248.1bn, led by investment trusts at ₩72.7bn and the National Pension Service at ₩46.4bn.Foreigners net-sold ₩176.0bn on the KOSPI spot market — a reversal from the one-week cumulative net purchase of ₩1,188.4bn, though on the futures market foreigners were net buyers of 1,125 contracts today, a divergence that in the 2026 regime has historically foreshadowed near-term positioning shifts.

02

Retail investors net-sold ₩1,165.2bn on KOSPI today — the fifth Friday in the 2026 regime when retail sold heavily against institutional buying.The 2026-regime lag data show a same-day correlation of −0.85 between foreign net buying and retail net buying (i.e., they characteristically trade opposite sides), a pattern that held today: foreigners sold spot while retail sold even harder, with institutions absorbing the flow.

03

The National Pension Service bought a net ₩46.4bn on KOSPI today, adding to a one-month cumulative purchase of ₩509.7bn — consistent with its pattern of counter-cyclical accumulation.Investment trusts (the largest sub-component of institutions) bought ₩72.7bn today but remain net sellers of ₩3,931.9bn over the past month, signaling that today’s buying is a partial offset within a longer withdrawal trend.

04

The KOSDAQ flow picture was the inverse of KOSPI: retail net-bought ₩623.6bn while foreigners net-sold ₩283.7bn and institutions net-sold ₩346.2bn — retail absorbed two-way selling from institutional and foreign participants.Over the past one month, foreigners have net-sold ₩1,643.3bn on KOSDAQ; retail has net-bought ₩1,554.6bn — the two flows have nearly offset each other while the index has struggled to hold the 800 level.

05

The quarter-to-date (May 21–August 21, 2026) picture is structural: foreigners have net-sold ₩65.80tn on KOSPI, offset by retail net-buying of ₩50.95tn and institutions of ₩11.02tn.On KOSDAQ, the quarter shows foreigners net-buying ₩354.5bn and investment trusts ₩1,378.1bn, while retail net-sold ₩927.9bn — a reversal of the KOSPI structure, suggesting different ownership dynamics between the two markets over a multi-month horizon.

Foreign investors → retail · KOSPI (same-day correlation)Retail investors-0.851 (moves almost exactly opposite)· KOSPI0.524 (tends to move in the same direction)
Investment firms → retail · KOSPI (same-day correlation)Retail investors-0.612 (moves almost exactly opposite)· KOSPI0.592 (tends to move in the same direction)
Pension funds → retail · KOSPI (same-day correlation)Retail investors-0.171 (no clear relationship)· KOSPI0.001 (no clear relationship)
How to read the correlationCloser to +1 means they moved together; closer to −1 means they moved opposite — measured in the current regime (2026)
05 · Fear gaugeStanding gauge8 components · percentiles based on the current regime (2026)

Silmari Fear Gauge — past and present

A window measuring market anxiety through volatility, margin lending and short selling

The sentiment gauge held at 0.894 — “Neutral” stage — as leverage-ETF share and 20-day volatility remained among the most elevated inputs confirmed today.

Volatility percentile
93
0–100 · higher means more warning · based on the current regime (2026).
Margin balance, 5-day change4.85 — Change in Leveraged Purchases — Larger increases create greater forced liquidation pressure on declines ·As of 08.20
Forced-liquidation share1.0 — Share of Forced Liquidations — Higher ratio signals greater mechanical selling pressure ·As of 08.20
Short-interest surge multiple4.73 — Short bets multiplied how many times in 5 days — Steep surge is a warning signal ·as of 08.18
Retail buying intensity on down days0.0 — N/A — Not a down day (0.88%)
Consecutive no-trigger down days0.0 — N/A — No-trigger declines did not continue
KOSPI 20-day realised volatility5.97 Risk · Top 7%· Recent 1-month volatility size — dashboard’s core metric
Leveraged-ETF share of turnover12.63 Risk · top 6%· Leveraged product fund concentration — short-term sentiment gauge

The sentiment gauge scores 0.894 today, placing it in the “Neutral” stage (expanding-window percentile bands: Neutral = 35th–65th).Two inputs are confirmed as of today: 20-day volatility (Korea Volatility Index (proxy)A measure of implied 20-day realized volatility used in this edition as a proxy for the official VKOSPI, reflecting market uncertainty.At 5.97% today (93rd expanding-window percentile), the volatility input is among the more elevated confirmed readings in the sentiment composite and carries the highest weight (22.5%) in the gauge. proxy) at 5.97% sits at the 93rd expanding percentile; single-stock leverage-ETF share of total turnover at 2.845% sits at the 94th percentile — both among the more elevated confirmed readings in the composite.

Three inputs carry reporting lags: credit balance (T+1, last confirmed value 4.85 as of August 20), margin balance (T+1, last value 1.0 as of August 20), and short-surge (T+2, last value 4.73 as of August 18).The two remaining inputs — panic-buy-on-down-day and no-trigger streak — are scored zero today because the KOSPI closed up +0.88%, making them not applicable.

Past pattern vs today
MeasureToday’s valueBasisWhere today sits
Retail buying intensity on down days0.0Current regime (2026) percentile70(top 30%)
KOSPI 20-day realised volatility5.97Current regime (2026) percentile93(top 7%)
Consecutive no-trigger down days0.0Current regime (2026) percentile86(top 14%)
Leveraged-ETF share of turnover12.63Current regime (2026) percentile94(top 6%)

Today is a trigger day for the KOSPI (+0.88%) but not for the KOSDAQ (−4.63%); the precursor score of 3 reflects signals that were set on prior sessions (ADR from July 28; short-surge from August 18) and remain active in the scoring window.The selling-acceleration signal (based on August 19–20 confirmed flows) is scored 0, meaning the confirmed data through those two sessions did not meet the threshold for that sub-signal.

On days when the sentiment gauge is in the Neutral stage without a confirmed trigger, the data do not support a directional conclusion from the gauge alone — the score reflects the cumulative weight of structural tensions (elevated leverage and volatility) rather than an acute selling event.The judgment is each reader’s own.

The gauge combines eight inputs, each weighted: 20-day realized volatility (weight 22.5%), single-stock leverage-ETF turnover share (10%), short-sale surge ratio (18%), credit balance five-day change (13.5%), margin balance level (18%), panic-buying on down-days (9%), no-trigger-streak count (9%), and a news-fear keyword proxy (excluded from the composite score but tracked separately at 13 keywords today) — all converted to expanding-window z-scores to prevent look-ahead bias.

The judgement is yours.

06 · Short interestBalance · surges · subsequent returns

Short sellingSelling borrowed shares first, betting the price will fall.A rising balance means more money is betting on a decline.balance — the pattern of surges

A window on the stocks whose short balance rose or fell, and what happened afterwards

SK hynix’s short-sale position surged 5.0x on August 18 (2026); the current-regime base rate shows that in 120 similar events since 2026, the KOSPI averaged −0.15% five sessions later.

Kumho E&C surged 5.2x (20260814)1d+4.10%· 3d+16.79%· 5 days None
Hyein surged 2.2x (20260814)1d+14.34%· 3d+11.97%· 5 days None
Halla Cast surged 2.6x (20260814)1d−5.72%· 3d−4.53%· 5 days None
Hana Micron surged 2.7x (20260814)1d+7.10%· 3d+0.82%· 5 days None
Samhwa Capacitor surged 2.2x (20260818)1d−3.49%· 3d−6.98%· 5 days None
SK Hynix surged 5.0x (20260818)1d−9.75%· 3d+4.09%· 5 days None

The most recent short-surge events in the data: SK hynix saw its short position rise 5.0x on August 18 (2026), triggering the surge definition (≥2.0x in five sessions, position ≥50,000 shares).In the current regime (2026–), the database records 120 similar surge events; the KOSPI’s average return five sessions later was −0.15%, with a down-day probability of 49% and an excess return versus the regime baseline of −2.82 percentage points — suggesting the surge carries a mild negative tilt in this regime, though the down-probability is near coin-flip.

07 · Sector mapToday’s move · leaders · flows · relative strength

Where the money moved —12sectors

A window on where money moved from and to, by sector

Defense & Aerospace fell −7.4% while Financials rose +1.4%, with Samsung Electronics (+3.87%) and SK hynix (+2.31%) keeping the semiconductor sector from a broader rout.

12 sectors × today’s move · leaders (top 5 by market cap and turnover, machine-selected) · flow direction · relative strength
SectorTodayFlowsRelative (1w)Leaders
Semiconductors−1.95%Buying+3.60%pSamsung Electronics+3.87%· SK hynix+2.31%· SK Square+0.00%· Samsung Electro-Mechanics−5.73%· Jusung Engineering−4.91%
AI & Software−3.27%Selling−3.40%pNAVER +1.14%· Kakao−7.49%· DearU−3.45%
Power & Electrical−4.42%Selling−14.10%pDoosan Enerbility−3.43% · LS ELECTRIC −6.12%· HD Hyundai Electric−3.75%· HYOSUNG Heavy Industries−4.76%· Gaon Cable−4.06%
Electronics & Components−1.01%Selling−7.30%pSamsung Electronics (Pref.)+8.26%· LG Energy Solution−4.05%· Samsung SDI−4.30%· LG Electronics−3.95%
Autos−0.97%Buying−2.30%pHyundai Motor−0.60%· Kia−0.15%· Hyundai Mobis−2.17%
Defense & Aerospace−7.40%Buying−9.90%pHanwha Aerospace−7.03%· LIG Defense & Aerospace−11.69%· Korea Aerospace Industries (KAI)−3.49%
Shipbuilding & Shipping−2.10%Buying−8.60%pHanwha Ocean−4.86%· HD KSOE (Korea Shipbuilding & Offshore Engineering)−3.33% · HMM +1.89%
Financials+1.40%Buying−3.70%pKB Financial Group+2.69%· Shinhan Financial Group+2.97%· Hana Financial Group+4.38%· Mirae Asset Securities−4.43%
Bio & Healthcare−3.07%Selling−2.30%pSamsung Biologics−1.46%· Celltrion−0.93%· Alteogen−5.74%· Kolon TissueGene−4.16%
Construction & Infrastructure−5.36%Buying−8.60%pHyundai E&C−7.21%· Daewoo E&C−4.67%· DL E&C−4.21%
Energy & Chemicals−2.02%−1.30%pSK Innovation−0.87%· LG Chem−4.36% · S-Oil −1.05%· Lotte Chemical−1.81%
Consumer & Entertainment−0.26%Selling−0.60%pSK Telecom+5.80%· HYBE−3.17%· CJ CheilJedang−0.43% · JYP Ent. −3.24%
Historical contextCapital rotated out of Defense & Aerospace (−7.4%), Power & Electric (−4.4%), and Construction & Infrastructure (−5.4%) into Financials (+1.4%) and, within the semiconductor sector, into Samsung Electronics (+3.87%) and SK hynix (+2.31%) specifically.The pattern is consistent with a defensive-rotation into domestic financials and selective mega-cap tech, rather than a broad risk-on or risk-off day; the semiconductor sector aggregate was −1.95% because smaller names (Samsung Electro-Mechanics −5.73%, Jusung Engineering −4.91%) dragged the sector average negative despite the two largest names rising.
08 · Top 10Close · change · flows by four investor groups

The stocks that moved the market — top by turnover10

A window on which investor groups backed the most heavily traded stocks

Samsung Electronics (₩7.70tn) and SK hynix (₩7.43tn) together accounted for the majority of KOSPI turnover, reflecting a day of concentrated mega-cap activity.

Samsung Electronics (₩7.70tn turnover, +3.87%) and SK hynix (₩7.43tn, +2.31%) alone represented the top two slots on both turnover and absolute price contribution to the KOSPI — together they accounted for ₩15.13tn of the total ₩34.35tn market turnover, a KOSPI top-10 concentration of 71.4%.On KOSDAQ, Ingenium Therapeutics (Reg.S) led turnover at ₩415.3bn despite falling −13.97%, followed by Gido Industries at ₩213.4bn (−34.58%) — both names were among the session’s largest KOSDAQ decliners, consistent with a turnover-on-collapse pattern rather than momentum buying.

Top 10 by turnover (KOSPI)
StockCloseChangeTurnoverForeign investorsInstitutionsInvestment firmsPension fundsRetail investors
Samsung Electronics₩281,500 (≈$203.29)+3.87%₩7.70tn+₩439.4bn+₩368.1bn+₩243.7bn+₩57.8bn−₩743.3bn
SK hynix₩1,730,000 (≈$1,249.37)+2.31%₩7.43tn+₩14.4bn+₩111.5bn−₩12.2bn+₩70.3bn−₩1.26tn
Samsung Electronics (Pref.)₩207,000 (≈$149.49)+8.26%₩2.17tn−₩97.4bn+₩181.0bn+₩112.7bn−₩7.8bn−₩93.6bn
Samsung Electro-Mechanics₩1,316,000 (≈$950.39)−5.73%₩928.8bn−₩119.5bn−₩117.0bn−₩65.4bn−₩31.5bn+₩236.4bn
SK Square₩1,123,000 (≈$811.01)+0.00%₩673.2bn+₩2.9bn+₩28.5bn+₩4.7bn+₩32.2bn−₩29.4bn
Kumho E&C₩14,750 (≈$10.65)−5.75%₩517.4bn−₩9.9bn+₩0.8bn−₩0.2bn+₩0.1bn+₩7.6bn
Kakao₩35,800 (≈$25.85)−7.49%₩353.4bn−₩52.3bn−₩45.3bn−₩15.7bn−₩5.7bn+₩96.5bn
Samsung Life Insurance₩328,500 (≈$237.24)+10.61%₩327.8bn
SK Securities₩2,955 (≈$2.13)+5.16%₩273.3bn
Kumho Electric₩8,380 (≈$6.05)+12.33%₩246.4bn
Historical contextForeign investors / institutions / investment firms / pension funds / retail investors · figures in Korean won · Source: KRX
09 · Up 5 · Down 5Reason labels: [News] confirmed · [Pattern] inferred

Gainers5· Decliners5KOSPI & KOSDAQ

A window on the biggest gainers and decliners, and the reasons behind them

On the KOSPI, decliners outnumbered advancers 683 to 193 out of 942 issues even as the index closed up +0.88%, underscoring extreme concentration in a handful of large caps.

KOSPI
Gainers · relative strength5 (KOSPI)
IndiEF+18.26%[Pattern]Turnover ₩19.2bn · machine ranking
Kumho Electric+12.33%[Pattern]Turnover ₩246.4bn · machine ranking
Samsung Life Insurance+10.61%[Pattern]Turnover ₩327.8bn · machine ranking
Samsung Electronics (Pref.)+8.26%[Pattern]Turnover ₩2.17tn · machine ranking
Samsung Fire & Marine+6.27%[Pattern]Turnover ₩76.2bn · machine ranking
Decliners5 (KOSPI)
Sama Aluminum−12.14%[Pattern]Turnover ₩14.8bn · machine ranking
LIG Defense & Aerospace−11.69%[Pattern]Turnover ₩194.9bn · machine ranking
Korea Circuit−11.36%[Pattern]Turnover ₩24.7bn · machine ranking
Isuh Chemical−10.27%[Pattern]Turnover ₩10.2bn · machine ranking
Pamicell−10.12%[Pattern]Turnover ₩22.4bn · machine ranking
KOSDAQ
KOSDAQGainers5
Comico+27.06%[Pattern]Turnover ₩43.8bn · machine ranking
Coocon+23.17%[Pattern]Turnover ₩17.9bn · machine ranking
Uri Technology Investment+19.96%[Pattern]Turnover ₩137.7bn · machine ranking
Galaxia Moneytree+12.61%[Pattern]Turnover ₩85.5bn · machine ranking
Genexine+10.83%[Pattern]Turnover ₩18.6bn · machine ranking
KOSDAQDecliners5
Gido Industries−34.58%[Pattern]Turnover ₩213.4bn · machine ranking
Algenomics−18.18%[Pattern]Turnover ₩24.4bn · machine ranking
Enchem−15.98%[Pattern]Turnover ₩14.7bn · machine ranking
Ingenia Therapeutics (Reg.S)−13.97%[Pattern]Turnover ₩415.3bn · machine ranking
Gigavis−13.40%[Pattern]Turnover ₩17.9bn · machine ranking

On the KOSPI, 683 issues fell versus 193 rising and 66 flat (ADR 0.28) even as the index closed up +0.88% — a high-concentration day where the top 10 stocks by turnover accounted for 71.4% of total KOSPI value traded.On the KOSDAQ, 1,378 issues fell versus 282 rising (ADR 0.20) — a breadth reading consistent with a broad-based down session; for comparison, the last available KOSDAQ breadth reading (August 19) showed ADR 0.31, so breadth weakened further today.

Historical contextSelection: turnover of ₩10bn or more · machine ranking by percentage change.
10 · KOSDAQ windowKOSDAQ close: 801.94 (−4.63%) · Friday, August 21 (2026) · KRX confirmed

The SilmariDecouplingWhen two markets that used to move together break apart and move separately.The wider the gap, the less any single index can tell you about the market.Gauge

A window on the pattern in the KOSPI–KOSDAQ decoupling

The KOSDAQ closed at 801.94, down −4.63%, as decliners swamped advancers 1,378 to 282 with retail investors absorbing ₩623.6bn net.

KOSPI · KOSDAQ close6,912.95 · 801.94
Today’s change+0.88% · −4.63%
Today’s gap (KOSPI − KOSDAQ)+5.51%p— 2%p or more, meets the promotion threshold
Year to date+60.41% · −15.19%
Silmari Decoupling Gauge — year-to-date gap+75.60%p
Foreign net buying — KOSPI · KOSDAQ−₩176.0bn · −₩283.7bn
Retail net buying — KOSPI · KOSDAQ−₩1.17tn · +₩623.6bn
Investment firms’ net buying — KOSPI · KOSDAQ+₩72.7bn · −₩229.7bn
Pension funds’ net buying — KOSPI · KOSDAQ+₩46.4bn · −₩45.6bn

The KOSDAQ’s −4.63% decline against the KOSPI’s +0.88% gain produced a spread of roughly 5.5 percentage points on the same session — a divergence driven by simultaneous net selling from foreigners (−₩283.7bn) and institutions (−₩346.2bn) on the smaller market, with retail the sole net buyer at +₩623.6bn.Over the past one month, KOSDAQ foreigners have net-sold ₩1,643.3bn while KOSPI foreigners were net buyers of ₩220.4bn — a structural preference for large-cap KOSPI names over KOSDAQ growth stocks that continued today.

11 · RotationK0 three-tier basis

Semiconductors → defensives, and back — by regime

A window on the pattern in sector rotation — money circulating from one sector to another

Defense & Aerospace shed −7.4% and Power & Electric −4.4% while Financials gained +1.4%, fitting the pattern of a sector rotation rather than a broad market sell-off.

Reversion within three days of a flight from semiconductors to defensives
RegimeReversion rate · sample
① Old order (2018–24)Average−0.84%· rose 45% of the time · 69 past cases
② Transition (2025)Average+1.70%· rose 71% of the time · 17 past cases
③ Current regime (2026–)Average+2.05%· Up 69% · 32 times previously

A day when semiconductors (the average of SK hynix and Samsung Electronics) fall 2.0% or more while defensives (bio, food & beverage) outperform by 2.0%p or more = rotation (a flight)

The data define a rotation day as one where semiconductors (SK hynix + Samsung Electronics average) fall ≥2.0% AND a defensive cluster outperforms by ≥2.0 pp — that threshold was not fully met today: Samsung Electronics rose +3.87% and SK hynix +2.31%, keeping the semiconductor pair positive despite the sector aggregate falling −1.95%.Today is therefore not classified as a rotation event by the model definition; instead, it is characterized by selective mega-cap buying alongside broad defensive-sector and small-cap selling — a different configuration from a classic rotation signal.

12 · ADR alertAlert tier · not a probability

The night makes the morning —American Depositary Receipt (ADR)A twin of a Korean stock, listed on a U.S. exchange.It prints overnight, showing how U.S. investors price Korean stocks before Seoul opens.crash detection

A window on how U.S.-listed Korean stocks moved overnight

The crash-precursor score stands at 3 out of a possible 4 active signals, driven by ADR and a short-surge flag, though two inputs remain on reporting lags.

Precursor score3
ADR2(available: 2026-07-28 U.S. session -16.7%)
Short-interest surge1(available: —)
Selling acceleration0(available: 2026-08-19 · 2026-08-20 confirmed flows)
Sentiment 90+0(available: —)

The crash-precursor score stands at 3 out of 4 possible active signals: ADR (scored from the US session of July 28, 2026, −16.7%) and the short-surge flag (SK hynix 5.0x on August 18) are both active; selling-acceleration and the sentiment-90+ flag are both scored zero as of today’s confirmed data.A score of 3 is not a binary warning — the four signals were designed to be read in combination and in the context of the regime; the data do not provide a historical win-rate for a score of exactly 3 in the 2026 regime separately from the broader precursor table.

13 · Tonightas of 19:53 KST on 2026-08-21

Tonight — the U.S. session about to open

S&P 500 and Nasdaq futures both pointed lower as of 05:00 KST — ES=F at 7,667.75 (−0.97%), NQ=F at 29,317.25 (−1.20%) — with rising Treasury yields the stated catalyst.

S&P 500 futures (ES=F)7,667.75, −0.97% as of 05:00 KST Aug 21 vs Aug 20 15:00 KST close
Nasdaq 100 futures (NQ=F)29,317.25, −1.20% on the same window
Nikkei futures (CME·yen)65,525.0, −1.18%; cash Nikkei 225 closed at 66,016.36, −0.31% today
14 · Cross-followingMeasured in 2026

Korea–U.S. mutual following — overnight grading

A window on which market followed which

The SOX rose +0.53% on Thursday, August 20 (2026); Korea’s KOSPI followed in the same direction Friday, consistent with the 2026 YTD pattern in which Korea trailed the US in 39 of 139 measured sessions.

The SOX rose +0.53% on August 20 (2026); today’s KOSPI closed +0.88%, moving in the same direction — consistent with a Korea-follows-US signal for this session.In the 2026 YTD sample of 139 measured sessions, Korea followed the US in 39 sessions, the US followed Korea in 30, both moved together (bidirectional) in 46, and 24 showed no tracking — meaning same-direction movement occurred in a meaningful but not dominant share of sessions, and today’s alignment is one data point within that distribution.

The 2026 YTD cross-follow tally (Korea trailing US: 39, US trailing Korea: 30, bidirectional: 46) suggests neither market is a consistent one-way leader — the bidirectional category is the single largest bucket.Tonight, with US futures already pointing lower (ES=F −0.97%), the tracking question for Monday will be whether Korean markets open with a gap reflecting tonight’s US move — the 2026 regime data do not specify a probability for that outcome separately from the general follow-rate.

Days Korea followed the U.S.39 days
Days the U.S. followed Korea30 days
Both ways46 days
Sample139 days

Overnight SOX ↔ same-day KOSPI in the same direction (|SOX| ≥ 0.5%) = Korea following · same-day KOSPI ↔ that night’s SOX in the same direction (|KOSPI| ≥ 0.5%) = the U.S. following

15 · FX windowas of 19:53 KST on 2026-08-21

The won — the signal is the speed of the move, not its direction

A window on the pressure the won-dollar rate puts on foreign flows

The won traded at ₩1,384.7 per dollar as of the last available strip reading, with the DXY dollar index at 98.6 — down −0.29% on the day.

USD/KRW₩1,384.7 (latest strip)
100 JPY/KRW₩873.13
DXY (Dollar Index)98.6, −0.29% on Aug 21 (2026)

The won-dollar rate stood at ₩1,384.7 per dollar in the latest available strip reading; the DXY dollar index was at 98.6, down −0.29% on August 21 (2026).The yen-won cross (100 yen) was at ₩873.13; the Nikkei 225 closed at 66,016.36 (−0.31% on the day, per the confirmed strip reading), suggesting the yen did not strengthen enough to compress Korean export-sector margins materially on this session.

16 · Rates windowas of 19:53 KST on 2026-08-21

Rates — a weaker link than commonly assumed

A window on the burden rates and bonds place on equities

The US 10-year Treasury yield stood at 4.70% as of August 20 (2026), up +0.92% on the session, after the Treasury Secretary’s bond-buyback rally faded.

US 10-year yield4.70% (Aug 20, 2026 close), +0.92% on the session
Gold (oz)$4,647.9 (latest strip)
Copper (lb)$6.59 (latest strip)

The US 10-year Treasury yield was at 4.70% as of August 20 (2026), up +0.92% on the session, after Treasury Secretary Bessent’s bond-buyback comments failed to sustain a rally in longer-dated bonds — per the event calendar headline from 18:36 KST.The overnight futures data (ES=F −0.97%) cited rising Treasury yields as the primary catalyst for equity weakness heading into the US Friday session; the August 21 (2026) Korean session preceded this US move, so the rate signal was not yet fully priced into Korean equities today.

17 · ReferenceCondensed · reference

Reference — brokerages, Wall Street and the windows

A window collecting brokerage research and overseas news

No brokerage reports were collected for today’s edition; Wall Street scorecard stands at 54% accuracy across 28 tracked calls.

Indicator strip — overseas indices, FX and commodities
EWY (Korea ETF)178.16 (+2.14%· as of 2026-08-20)
Nikkei 22566016.36 (−0.30%· as of 2026-08-21)
Dollar index98.61 (−0.29%· as of 2026-08-21)
U.S. 10-year Treasury4.7 (+0.92%· as of 2026-08-20)
Nasdaq26067.17 (−1.00%· as of 2026-08-20)
SOX semiconductors11800.02 (+0.53%· as of 2026-08-20)
S&P5007641.16 (−0.87%· as of 2026-08-20)
The brokerages’ view — named research

No brokerage reports were collected for Friday, August 21 (2026): the data system retrieves only current reports from the NAVER Research portal, and same-day reports are not recoverable after the session unless captured in real time — none were captured today.

Wall Street scoreboard

15 of 28 calls correct (54%) — measured three trading days after publication.

Morgan Stanley3/4 — negative (2026-07-13) warned semiconductors were overbought, citing the precedent of a memory winter
Macquarie1/3 — positive (2026-05-15) Macquarie raised its SK hynix price target to ₩2.9m, citing long-term contracts at up to 50% of the mix
UBS1/1 — positive (2026-01-13) UBS raised its SK hynix price target to ₩1m
Goldman Sachs3/5 — positive (2026-06-03) “The KOSPI has another 37% to run” — Goldman Sachs raised its KOSPI target to 12,000
Citigroup2/3 — positive (2026-06-14) Citigroup raised its KOSPI target to 10,000 and kept its bullish view
J.P. Morgan0/3 — positive (2026-06-25) J.P. Morgan raised its 12-month KOSPI target to 12,500 and urged a maximum weighting in Korean equities
Nomura4/6 — positive (2026-06-24) Nomura lifted its Samsung Electronics target from ₩590,000 to ₩670,000
Barclays0/2 — positive (2026-07-23) price target $330, implying 117% upside
Bernstein1/1 — positive (2026-06-22) Bernstein raised targets for Samsung Electronics, SK hynix and Micron, noting that rising memory prices are squeezing AI costs
Recent IB calls — collected, not yet graded

The Wall Street Scorecard tracks directional calls made by nine named brokerages over a three-session horizon; as of today the cumulative record stands at 15 hits out of 28 total calls, a 54% accuracy rate — Nomura leads at 4/6 and JP Morgan and Barclays are each 0/3 and 0/2 respectively.

Korea’s sovereign AI — measured timeline
Event density
01 · MacroUS Treasury yields rebound drives broad NYSE decline — Dow −1.3% (Yonhap International)
02 · EarningsSamsung Electronics announces ₩15T buyback for employee compensation (Yonhap Industry)
03 · Industry structureSamsung SDI to sell Samsung Display stake for ₩4.4T — raises capital for US plant investments (Yonhap Securities)
04 · Industry structure3 new ETFs linked to Samsung Electronics, SK Hynix, US Treasuries launching 25th (Yonhap Economics)
05 · PolicyUS Treasury Secretary: $4B+ per Treasury buyback possible — but long-end rate rebound limits impact (Yonhap International)
06 · GeopoliticsGlobal oil up 2%+ after US escalates Iran economic pressure; Brent ~$93 (Yonhap International)
07 · Industry Structure (Overseas)Micron CEO: AI has fundamentally altered memory industry boom-bust cycle (CNBC)
08 · Macro (Overseas)Taiwan’s AI-driven 11% GDP growth outlook deemed unsustainable by economists (CNBC)
09 · Macro (Overseas)Japan headline inflation hits year-high amid energy price surge (CNBC)
10 · Macro (Overseas)Bessent: Trump administration fiscal deficit likely peaked (CNBC)
11 · Macro (Overseas)Fed independence debate — Warsh’s next-Chair candidacy tested by Bessent’s central bank scope expansion (CNBC)
Media headlines

The event calendar for today’s session carried 15 items across macro, industrial, geopolitical, and policy categories; key themes overlapping with this edition’s blocks include: Samsung Electronics’ ₩15tn employee share buyback (after close), Samsung SDI’s ₩4.4tn Samsung Display stake sale for investment funding (after close), US Treasury yield rebound as Bessent’s buyback rally faded (pre-market), and oil prices rising on US-Iran economic pressure comments.Because multiple macro and corporate events landed on the same session, this edition does not attribute the day’s moves to any single cause.

Detailed per-stock data (open, high, low, close, turnover) for all named companies in this edition are drawn from KRX same-day confirmed figures and NXT intraday snapshots (20-minute delay); NXT after-market data for August 21 (2026) will be confirmed in the following session’s data file.

18 · Closingas of 19:53 KST on 2026-08-21

Closing today, on to tomorrow

A window that closes today and hands over to tomorrow

Samsung buybackKOSDAQ breadth collapseDefense rotation out
Summary by topic
KOSPIClosed +0.88% at 6,912.95; range 6,742.44–6,954.12 (intraday swing 3.14%)
KOSDAQClosed −4.63% at 801.94; decliners 1,378 vs advancers 282 out of 1,822 issues
Flows (today)KOSPI: institutions net +₩248.1bn, foreigners −₩176.0bn, retail −₩1,165.2bn; KOSDAQ: retail +₩623.6bn, all others sold
Sector splitFinancials +1.4%, Semiconductors −1.95% (Samsung Elec +3.87% offset by index-weight drag); Defense −7.4%, Power & Electric −4.4%
Sentiment gaugeScore 0.894, stage Neutral; vol20 at 5.97% (93rd pctile), leverage-ETF share 2.845% (94th pctile); credit and short-surge inputs on T+1/T+2 lag
Today’s lesson

The KOSPI call (P1: +0.88%, within the +0.3–+1.5% band) hit; the KOSDAQ call (P2: flat ±0.5%) missed badly — the index fell 4.63%, which the model attributed only to weak momentum, not to the broad-based institutional and foreign selling that materialized. The lesson: on days when both foreigners and institutions sell KOSDAQ simultaneously, a flat call is insufficient regardless of the SOX signal.

The U.S. session about to open
S&P 500 futuresES=F at 7,667.75, −0.97% overnight as of 05:00 KST; in the 2026 regime, a Korea up-day followed by a negative US futures read has historically shown no consistent next-day direction in the available sample
Nasdaq / SOXNQ=F −1.20% overnight; SOX closed at 11,800.02 (+0.53% on Aug 20) — if SOX moves ≥0.5% tonight, the 2026 YTD pattern suggests Korea follows in the same direction in roughly 39 of 139 sessions measured
US 10-year yield4.70% (Aug 20 close, up +0.92%); Treasury Secretary bond-buyback rally faded — watch whether yields hold above 4.70%, which has been associated with equity headwinds in multiple recent sessions
Sources: Korea Exchange · NXT · own measurements · regular session confirmed 15:30 KST · The Silmari editorial desk. USD figures are converted at ₩1,384.7/$ — the won-dollar rate printed in this edition — and are approximate.
This edition organises and explains publicly available market data. It is not investment advice. Predictions and their scores are preserved without revision — the judgement is yours.