The key benchmark Kospi and junior Kosdaq opened higher on Monday after their last trading session on Thursday, amid strong retail demand and foreign buying betting on a pandemic recovery.

The Kospi, which ended at 2,977.65 for its final trading session in 2021, closed at 2,988.77, while the Kosdaq ended at 1,037.83, slightly up from 1,033.98 from the previous session.

The rebound was backed by retail investors and foreigners, who snatched up a net 519 billion won ($435 million) and 266 billion won, respectively. Institutions offloaded 813 billion won.

Experts have said the Kospi could climb as high as 3,480 this year, surpassing 3,305, the all-time record set in July 2021, though analysts were divided over when the index would mark a new record.

“In the first half of 2022, we will see supply shortages ease more and inflation coming down. A strong rebound is expected in the latter half and chip shares would lead the rise,” said Kim Seung-hyun, head of research at Yuanta Securities Korea.

But other analysts have suggested the rebound would come in the first half, saying the upward momentum would phase out as the local market would be left more vulnerable to outside changes ahead of a rate hike by the US Federal Reserve.

Meanwhile, the Korea Exchange said it would cultivate a climate hospitable to sustainable market growth.

“We will expand our support for unicorns and future industries like artificial intelligence and robotics to find their investment,” said Sohn Byung-doo, chairman of the bourse operator Korea Exchange at a Monday ceremony to mark the New Year’s trading.

The KRX recently rolled out revised rules to attract unicorns -- private companies valued at $1 billion or more -- after Seoul-based e-commerce giant Coupang walked away from the local exchange to debut on the New York Stock Exchange. Coupang’s market value stands at 60 trillion won.

The two presidential candidates from the ruling Democratic Party of Korea and the main opposition People Power Party joined the ceremony in what many see as a move to appeal to millions of retail investors ahead of the March presidential election.

The two nominees said the local stock market has ample room for improvement, highlighting trust as essential for sustainable market growth.