South Korean Shares Hit Record High on Chip Rally

The benchmark KOSPI surged more than 4% to around 7,850 on Monday, hitting a fresh record high, driven by continued strength in semiconductor and AI-related shares after another rally on Wall Street. Samsung Electronics jumped over 7% while SK hynix soared nearly 12%, tracking strong gains in major US chipmakers. Investor sentiment was further supported by data showing South Korea’s exports rose 43.7% year-on-year in the first 10 days of May, with semiconductor shipments surging almost 150% to a record high amid booming AI server demand. Other notable gainers included SK Square (5.1%), HD Hyundai Heavy Industries (3.0%), Hanwha Aerospace (2.7%), and Kia Corporation (5.8%). Meanwhile, markets also monitored escalating geopolitical tensions in the Middle East after Seoul confirmed that unidentified airborne objects struck a South Korean-operated vessel in the Strait of Hormuz, contributing to a sharp rise in global oil prices and renewed concerns over energy supply disruptions.

The benchmark KOSPI rose 0.11% to close at a fresh record high of 7,498 on Friday, extending its winning streak to a fourth straight session, as gains in AI-related chip stocks continued to support investor sentiment. The index opened lower amid risk aversion across Asian markets on news of renewed US-Iran tensions, but sentiment later stabilized after US President Donald Trump said the ceasefire with Iran remained in effect. Large-cap performance was mixed, with SK Hynix (1.93%), Hyundai Motor Company (7.17%), and Kia Corporation (4.38%) posting gains, while Samsung Electronics (-1.10%), Doosan Enerbility (-4.99%), and HD Hyundai Heavy Industries (-5.05%) declined. Optimism surrounding Korea’s AI and semiconductor outlook continued to underpin the market, following strong earnings momentum and robust export demand tied to the global AI boom. Additional support came after South Korea posted a record current account surplus in March, driven by a sharp surge in semiconductor exports.

The benchmark KOSPI fell 0.7% to around 7,440 on Friday, pausing after a record-setting run, as renewed US-Iran tensions triggered profit-taking. Investor sentiment weakened after the US and Iran exchanged fire in the Strait of Hormuz, raising concerns over potential disruptions to global oil supplies. The escalation pushed Brent crude prices back above $100 per barrel and fueled broader risk aversion across Asian markets. Technology shares led the decline, with heavyweight chipmakers Samsung Electronics (-2.0%) and SK Hynix (-0.3%) retreating, alongside LG Energy Solution (-2.2%), Doosan Enerbility (-4.7%), and HD Hyundai Heavy Industries (-5.1%). Still, losses were partly capped by continued optimism over Korea’s AI and semiconductor outlook, with the index up over 12% this week for its strongest weekly gain since 2008. Additional support came as South Korea posted a record current account surplus of $37.33 billion in March, driven by a sharp surge in semiconductor exports.