South Korean Shares Rebound

The benchmark KOSPI rose more than 1% to around 7,740 on Wednesday, rebounding after a sharp selloff in the previous session as investors selectively bought semiconductor and large-cap technology stocks. Optimism over AI demand and strength in chip exports continued to support sentiment. Gains were led by SK Hynix (2.9%), SK Square (1.9%), Hyundai Motor (5.3%), HD Hyundai Heavy Industries (2.6%), and Kia Corporation (1.9%), while losses were seen in Samsung Electronics (-2.2%), LG Energy Solution (-3.2%), and Doosan Enerbility (-4.9%). Meanwhile, hotter-than-expected US inflation strengthened expectations that the Federal Reserve could keep interest rates elevated for longer, while lingering uncertainty over US-Iran peace talks and elevated oil prices continued to weigh on sentiment. Investors also remained cautious amid policy uncertainty over proposals to redistribute AI-driven excess tax revenues and fears of a major Samsung Electronics strike after wage talks collapsed.

The benchmark KOSPI fell 2.29% to close at 7,643 on Tuesday, snapping a record-setting rally, as investors locked in profits following the recent surge toward the 8,000 mark. Sentiment also turned cautious after US President Donald Trump warned that the Iran ceasefire was on “massive life support,” reviving concerns over disruptions in the Strait of Hormuz and higher oil prices. Losses were led by Samsung Electronics (-1.23%) and SK hynix (-1.60%), while SK Square (-4.38%), LG Energy Solution (-5.77%), Doosan Enerbility (-1.80%), Hanwha Aerospace (-2.43%), and Kia Corporation (-3.66%) also declined. Still, support remained from continued optimism over the AI-driven semiconductor boom after major Wall Street chip stocks extended gains overnight. Investors also assessed upbeat domestic growth expectations after Finance Minister Koo Yun-cheol said South Korea’s economy is likely to grow by more than 2% this year on strong semiconductor exports and record current account surpluses.

The benchmark KOSPI surged 4.32% to close at 7,822 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 5.96% while SK hynix soared 11.39%, 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 (7.65%), Hyundai Motor (5.38%), HD Hyundai Heavy Industries (4.26%), and Kia Corporation (6.08%). 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.