BlockBeats News, July 31st: After experiencing a continuous downturn throughout July, the South Korean KOSPI index surged more than 17% intraday on the 31st, marking the largest single-day gain in history. While some investors optimistically view this rebound as a "signal flare" for a market trend reversal, market experts believe that the South Korean stock market is easily influenced by foreign capital flows, its volatile and fragile structure has been once again validated, and this rebound may ultimately turn out to be a "dead cat bounce."

Data shows that just over two minutes after the market opened, foreign investors' net purchase of Korean stocks reached 1.6 trillion Korean won. By the closing bell, foreign investors had accumulated a net purchase of 7.18 trillion Korean won throughout the day, setting a new all-time record. At the same time, South Korean individual investors net sold 8.2 trillion Korean won, also marking a new all-time high in single-day net selling.

Analyst Lee Chae-won stated, "It is currently difficult to determine whether this rebound is a temporary technical recovery or the starting point of an upward trend." "Ultimately, the key lies in the semiconductor cycle. As the market questions whether the high operating profit margin can be sustained, investors should focus on whether the semiconductor supply bottleneck will continue beyond 2028 when making decisions in the next six months."

A professional in the asset management industry noted, "Retail investors who are currently trapped at the current high levels are likely to sell near the previous high points of 8000 to 9000 points to lock in profits, thereby inhibiting the upward trend."