KOSPI Hits Over 1-Month High on Iran Talks Hopes

The benchmark KOSPI rose more than 3% to around 5,995 on Tuesday, rebounding sharply to its highest level since late February, amid renewed US–Iran talks hopes and strength in technology and AI-related stocks. Investor sentiment improved after both the US and Iran showed openness to re-engage despite the recent breakdown in talks and continued military tensions, easing fears of a prolonged disruption in global energy supply. Oil prices pulled back from recent highs, relieving inflation concerns and supporting the outlook for energy-importing economies such as South Korea. At the same time, gains tracked a broader rally in global equities after Wall Street advanced to fresh highs, with technology and AI-related shares leading the rise. Notable gains were seen in Samsung Electronics (3.3%) and SK hynix (7.0%), alongside Hyundai Motor (4.4%), SK Square (7.1%), Kia Corporation (2.2%), and HD Hyundai Heavy Industries (1.6%).

The benchmark KOSPI fell 0.86% to close at 5,809 on Monday, reversing from the previous session, as rising geopolitical tensions and higher oil prices weighed on sentiment. Markets retreated after US–Iran talks collapsed without an agreement. Washington then moved to impose a naval blockade on Iranian ports, raising fears of prolonged conflict and disruptions to global energy supply. Crude prices climbed above $100 per barrel, intensifying concerns over inflation and slower global growth, with South Korea particularly exposed due to its heavy reliance on energy imports. Foreign investors led the selling, dragging down large-cap stocks and reinforcing the index’s decline. Investors reduced exposure to export-oriented and cyclical sectors amid heightened uncertainty. Losses were seen across major stocks, including Samsung Electronics (-2.55%), Hyundai Motor (-2.40%), LG Energy Solution (-3.03%), Kia Corporation (-1.41%), and KB Financial Group (-1.33%).

The benchmark KOSPI rose 1.40% to close at 5,859 on Friday, rebounding from the previous session and heading for its strongest weekly gain in over 17 years, amid a global tech rally and US–Iran ceasefire hopes. CoreWeave struck a $21 billion deal with Meta Platforms, reinforcing AI infrastructure demand and boosting South Korean equities as an AI bellwether. Wall Street’s tech-led gains supported chipmakers, with Samsung Electronics (0.98%) and SK hynix (2.91%) among the top gainers, alongside Hanwha Aerospace (3.51%) and KB Financial Group (2.46%). At the same time, sentiment improved on the ceasefire over upcoming US-Iran negotiations, though risks persisted as restricted traffic through the Strait of Hormuz kept oil near $100 per barrel, sustaining inflation concerns. Meanwhile, foreign outflows capped gains, after investors recorded a third straight month of net selling in March, marking a record high and underscoring caution toward Korean assets amid geopolitical uncertainty.