The Korea Composite Stock Price Index is close to regaining the psychologically important 2,000 point level again, powered by 13 consecutive days of buying by foreign investors.
Foreigners bought more than W808 billion (US$1=W1,085) worth of Korean shares on Tuesday, the highest amount so far this year. The KOSPI ended up 0.98 percent at 1,994 points.
But institutional investors took profits, selling W343.2 billion, and individual investors sold W446.5 billion.
Foreigners have bought W4.5 trillion worth of Korean stocks over the last 13 trading days.
"Foreign investments funds, which had kept low positions on Korean stocks, appear to be boosting their purchases following positive evaluations of Korea," said Oh Hyun-seok at Samsung Securities. "But this is not due to an improvement in the fundamentals of Korean companies, but due to global liquidity. External uncertainties remain, including signs of quantitative easing by the U.S. Federal Reserve during the Chuseok holidays" next week, he said.
The won closed at W1,084.1 against the dollar on Tuesday, up W2.7 from the previous day.