{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,8]],"date-time":"2026-07-08T16:14:46Z","timestamp":1783527286731,"version":"3.55.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>When a dominant class of investors withdraws from an equity market, does the market's capacity to absorb order flow change, and who becomes the marginal price-setter? We study the Korean stock market in 2026, when the KOSPI index doubled as foreign investors sold at a record pace and domestic households absorbed the supply. Because official investor-type trading data were access-restricted, we assemble a new daily dataset of foreign, institutional, and household flows for 400 listed firms over 2024 to 2026 from public sources. Because daily turnover nearly quadrupled over the sample, we scale flows by trading volume to remove the mechanical shrinkage this induces in raw price-impact coefficients. So normalized, price impact per unit of trading rose sharply in 2026, roughly doubling for both foreign and institutional flow: the market became markedly less elastic as it climbed. Within this, the ratio of foreign to institutional price impact fell from near parity in 2024 to about two-thirds across three normalizations, so among the directly observed investor groups domestic institutions overtook foreigners as the higher-impact marginal flow. Two further claims fail: foreign flow's return predictability shows only a marginal, unstable break, and firms that lost the most foreign ownership are not more volatile once size is controlled.<\/jats:p>","DOI":"10.2139\/ssrn.7077780","type":"posted-content","created":{"date-parts":[[2026,7,8]],"date-time":"2026-07-08T15:23:26Z","timestamp":1783524206000},"source":"Crossref","is-referenced-by-count":0,"title":["Who Sets the Price When Foreigners Leave? Falling Market Elasticity and the Rise of Domestic Institutions in the 2026 KOSPI Rally"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0005-8477-9393","authenticated-orcid":true,"given":"Boon Chuan","family":"Lim","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,7,8]],"date-time":"2026-07-08T15:23:26Z","timestamp":1783524206000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=7077780"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.7077780","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}