South Korean Shares Rally to Record High on Trade Deal, Tech Gains

The benchmark KOSPI soared 6.45% to close at 7,385 on Wednesday, extending its record-setting run, driven by a tech-led rally and improved global risk sentiment. Semiconductor heavyweights led the advance, with Samsung Electronics (15.27%) surging after briefly crossing a $1 trillion valuation on renewed AI-driven momentum, alongside SK Hynix (9.99%) hitting record highs on optimism over the AI chip supercycle and tightening memory supply. Other notable gains included SK Square (9.89%), Hyundai Motor (2.23%), and LG Energy Solution (2.33%). Sentiment was also lifted after US President Trump paused efforts to guide vessels through the Strait of Hormuz amid progress toward a deal with Iran, easing concerns over a key oil route as oil prices fell, softening inflation pressures. Strong foreign and institutional buying added support, with overseas investors purchasing about KRW 3 trillion of shares and institutions adding about KRW 1.9 trillion, tracking Wall Street’s record highs.

The benchmark KOSPI soared 5.12% to close at 6,937 on Monday, hitting a fresh record high, driven by a semiconductor-led rally and improved risk sentiment. South Korea’s factory activity expanded at its fastest pace in more than four years in April, with the S&P Global manufacturing PMI rising to 53.6 as semiconductor demand boosted output and new orders. Samsung Electronics (5.33%) and SK hynix (12.67%) advanced, as optimism around AI-linked memory demand continued to lift valuations across the technology sector. Notable gains were also seen in SK Square (17.60%), Hanwha Aerospace (3.25%), and Hyundai Motor (1.22%). Broader risk appetite improved after US efforts to ease shipping disruptions in the Strait of Hormuz helped alleviate supply concerns and reduce immediate pressure on energy import costs. Still, geopolitical uncertainty persisted, as rising raw material prices pushed factory input cost inflation to a record high. Markets are closed on Tuesday for Children’s Day.

The benchmark KOSPI fell 1.38% to close at 6,599 on Thursday, snapping its multi-session rally as rising geopolitical tensions in the Middle East and surging oil prices prompted profit-taking. Brent crude climbed toward $120 per barrel following the escalating US-Iran standoff, raising concerns over inflationary pressure and higher energy import costs. Broader regional weakness and caution after the Fed held rates steady while warning of elevated uncertainty also pressured sentiment. Losses were led by Samsung Electronics (-1.55%), Hyundai Motor (-4.23%), LG Energy Solution (-3.17%), and Doosan Enerbility (-1.93%). Meanwhile, investor confidence was initially supported by Samsung Electronics’ record first-quarter earnings, driven by robust AI-related chip demand, alongside stronger-than-expected results from major US technology firms that reinforced optimism over the global AI boom. The KOSPI is closed on May 1 in accordance with Labor Day and will resume on Monday (May 4).