South Korean Shares Extend Record Rally

The benchmark KOSPI rose more than 1% to around 6,580 on Monday, extending its rally to a fresh record high amid gains in heavyweight chipmakers and stronger domestic economic signals. Semiconductor shares led the advance, with SK hynix (5.2%) surging on sustained optimism over its AI memory leadership and Samsung Electronics (1.6%) also moving higher, as investors focused on upcoming earnings from major global technology firms. Notable gains were also seen in Hyundai Motor (3.0%), SK Square (6.6%), HD Hyundai Heavy Industries (1.0%), HD Korea Shipbuilding and Offshore Engineering (1.5%), and LS Electric (9.7%). Sentiment was further supported by stronger-than-expected South Korean economic growth, which reduced expectations for Bank of Korea rate cuts and reinforced confidence in domestic resilience. Meanwhile, investors largely looked past stalled US-Iran peace talks and elevated oil prices, prioritizing corporate momentum and policy expectations over geopolitical concerns.

The benchmark KOSPI closed flat at 6,476 on Friday, pausing its recent record rally as investors remained cautious amid persistent geopolitical tensions in the Middle East. The US ordered naval action against vessels laying mines in the Strait of Hormuz, while Iran seized commercial ships and signaled the waterway may remain disrupted, heightening concerns over global oil supply despite a temporary ceasefire extension between Israel and Lebanon. Losses were driven by technology stocks, tracking an overnight pullback on Wall Street and profit-taking after recent peaks, with Samsung Electronics (-2.23%) and SK Hynix (-0.16%) falling. Automakers also weakened, with Hyundai Motor (-3.57%) and Kia Corporation (-3.09%) retreating. Meanwhile, heightened tensions supported defense and select industrial plays, partly offsetting broader declines, with gains in Hanwha Aerospace (2.95%) and HD Hyundai Heavy Industries (4.99%), alongside Doosan Enerbility (3.75%) and LG Energy Solution (3.22%).

The benchmark KOSPI rose 0.90% to close at 6,476 on Thursday, extending its record run as buying regained control after sharp intraday swings. Early gains followed improved global risk sentiment after the US extended its ceasefire with Iran, though sentiment later turned cautious following reports that the US intercepted Iranian oil tankers in Asian waters. The development prompted profit-taking after recent highs, driving a mid-session pullback before losses were gradually absorbed. At the same time, sentiment remained supported by South Korea’s stronger-than-expected 1.7% GDP growth in the first quarter of 2026, marking the fastest in over five years and reinforcing export and investment momentum. Large-cap performance was mixed, with Samsung Electronics (3.45%), Doosan Enerbility (5.69%), and SK Square (0.69%) posting gains, while SK Hynix (-0.08%), Hyundai Motor Company (-1.85%), LG Energy Solution (-3.82%), and Kia Corporation (-1.19%) declined.