🇰🇷 KOSPI · KOSDAQ

KOSPI vs KOSDAQ

Both are run by the Korea Exchange, but they differ in listing thresholds and the kind of company they attract. KOSPI sets higher equity and revenue requirements, so larger firms cluster there; KOSDAQ has a separate technology-and-growth track, so it holds relatively more venture and mid-cap names.

Both indices are market-cap weighted, meaning larger companies move the index more. A rising index does not mean most stocks rose.

Trading hours and call auctions

The regular session runs 09:00 to 15:30 Korea time. The open and close are handled by call auctions: orders placed between 08:30 and 09:00 accumulate without matching and then execute at a single opening price, and the 15:20–15:30 window sets the close the same way.

After the close there are additional after-hours windows — one trading only at the closing price, and one that batches orders into periodic single-price matches.

Price limits and tick sizes

Korean stocks have a daily move limit of ±30% from the previous close. Hitting the ceiling is called sanghanga, the floor hahanga. US markets have no such per-stock limit, so the same piece of news can be absorbed at a very different pace.

Order prices must sit on a defined tick, and the tick size widens as the share price rises.

Settlement, dividends and tax

Execution is immediate but settlement is T+2 — two business days later. Plan withdrawals around that gap.

Most Korean companies close their books in December, so record dates cluster at year-end. On the following session the price typically adjusts downward by roughly the dividend.

A securities transaction tax applies on sale and dividend income is taxed separately. Rates and deductions are set by statute and change over time, so check the National Tax Service or your broker for the figures that apply to you.