South Korean Shares Pause Record Rally

The benchmark KOSPI edged down 0.3% to around 6,625 on Wednesday, pausing its multi-session record run, as renewed global AI-sector concerns and rising oil prices prompted profit taking in heavyweight technology stocks. Sentiment weakened after reports that OpenAI missed internal growth targets pressured semiconductor and AI-linked shares, while overnight Wall Street losses reinforced caution. Major index components traded lower, including Samsung Electronics (-0.8%) and SK Hynix (-0.2%), alongside Hyundai Motor (-0.9%), LG Energy Solution (-0.4%), and Kia Corporation (-0.5%). Higher crude prices also weighed as OPEC disruption and continued Middle East uncertainty pushed Brent above $111 per barrel, raising concerns over Korea’s import costs despite government stabilization efforts. Still, downside was partly cushioned by ongoing capital market reforms, expanding AI partnerships, and broader policy support for semiconductors, shipbuilding, and supply chain security.

The benchmark KOSPI rose 0.39% to close at 6,641 on Tuesday, extending its record run, driven primarily by a tech-led global rally. Investor sentiment strengthened as Wall Street’s record highs and anticipation surrounding upcoming US Big Tech earnings boosted South Korea’s semiconductor and AI-linked heavyweights. Gains were recorded in SK Hynix (0.70%), Hyundai Motor (5.82%), LG Energy Solution (1.72%), SK Square (3.17%), Kia Corporation (2.10%), and Samsung SDI (6.77%). Domestic corporate momentum added further support after Samsung SDI returned to profit on stronger ESS battery sales, while Google DeepMind’s push to deepen AI partnerships with Samsung, SK hynix, Hyundai, and LG reinforced optimism over Korea’s long-term technology competitiveness. However, investors grew cautious ahead of Magnificent 7 earnings releases this week, while lingering Middle East tensions kept Brent crude high, limiting broader upside amid concerns over rising energy costs and inflation risks.

The benchmark KOSPI climbed 2.15% to close at 6,615 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 (5.73%) surging on sustained optimism over its AI memory leadership and Samsung Electronics (1.59%) also moving higher, as investors focused on upcoming earnings from major global technology firms. Notable gains were also seen in Hyundai Motor (1.75%), SK Square (8.14%), Doosan Enerbility (1.42%), HD Hyundai Electric (5.37%), and LS Electric (12.36%). 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.