Korean Shares Fall on Profit-Taking

The benchmark KOSPI fell 2.03% to around 6,179 on Friday, retreating from historic highs as investors moved to secure gains after a sharp rally. The pullback came a day after the index surged more than 3% to finish above the 6,300 mark for the first time. Index heavyweights trended lower, with notable declines from Samsung Electronics (-2.06%), SK Hynix (-4%), Hyundai Motor (-1.64%), Kia Corp (-2.67%), and SK Square (-5.30%). External sentiment was also weak, with US markets offering little support after Nvidia Corp. sank 5.5% despite solid earnings. On the upside, Lee Jae Myung reaffirmed his commitment to strengthening the capital market and boosting valuations. Following the index’s milestone move past 6,000, he stated that reforms are designed to eliminate the long-standing “Korea discount” and drive a structural market re-rating.

The benchmark KOSPI advanced 3.67% to around 6,307 on Thursday, marking a fresh record high as buying momentum intensified in large-cap chipmakers. The rally was driven by renewed global optimism following Nvidia Corp.’s stronger-than-expected earnings report. The company posted quarterly revenue of $68.13 billion, surpassing forecasts. Leading the surge in chipmaker stocks were Samsung Electronics (+6.14%) and SK Hynix (+3.05%), while gains in technology and automotive sectors also supported the index, with Hyundai Motor (+0.40%), Kia Corp (+1.66%), Naver (+3.75%), and Kakao (+4.70%). Further boosting investor confidence, the Bank of Korea held its key rate at 2.5% for the sixth straight meeting, citing strong growth and financial stability. Combined with robust corporate earnings, this stable monetary environment supported broad buying momentum in the market.

The benchmark KOSPI surged to a new all-time high of 6,083 on Wednesday, gaining 1.91% and extending gains for a fourth consecutive session, fueled by strong advances in technology stocks. Continued investor optimism surrounding artificial intelligence and record-setting semiconductor shares helped lift market sentiment. The benchmark briefly surpassed 6,000 at Wednesday’s open, just a month after reaching 5,000, and has risen 43% so far this year following a 76% surge last year, its strongest annual gain since 1999. Overseas markets provided additional support, with Wall Street finishing higher overnight. The Dow Jones Industrial Average rose 0.76%, while the Nasdaq Composite gained 1.04%. Within the local market, technology and automotive stocks led the rally, with notable increases in Samsung Electronics (+0.75%), SK Hynix (+0.80%), Hyundai Motor (+8.02%), and Kia Corp (+13.05%).