South Korean Shares Hit New Record on Chip Rally

The benchmark KOSPI surged more than 4% to around 8,420 on Wednesday, hitting a fresh record high as a global AI-driven semiconductor rally boosted investor appetite for Korean technology shares. Strong overnight gains on Wall Street fueled heavy buying in Samsung Electronics (6.4%) and SK hynix (9.9%), with SK hynix joining rivals Samsung Electronics and Micron Technology in the $1 trillion market capitalization club. Other notable gainers included SK Square (10.2%), LG Innotek (4.0%), and HD Hyundai Co. (3.3%). Additional support came from improving business sentiment, which climbed to its highest level in more than three years, alongside optimism over South Korea’s semiconductor-driven economic outlook. Meanwhile, investors continued to monitor developments in the Middle East as renewed US military action against Iran tempered optimism surrounding ongoing ceasefire and peace negotiations, keeping concerns over energy prices and inflation risks in focus.

The benchmark KOSPI climbed 2.55% to close at 8,048 on Tuesday, extending gains to fresh record highs, as optimism over a potential US-Iran agreement boosted global risk appetite. US President Donald Trump said negotiations with Iran were progressing “nicely,” raising hopes for the reopening of the Strait of Hormuz and easing concerns over disruptions to global oil supplies, helping push crude prices lower. The rally was further fueled by strength in AI-related semiconductor stocks amid upbeat earnings expectations and robust demand for high-bandwidth memory chips. Samsung Electronics (2.56%) and SK hynix (6.49%) led the gains, while advances also spread across automakers, battery makers, and shipbuilders, including Hyundai Motor (5.19%), HD Hyundai Heavy Industries (9.41%), Kia Corporation (1.27%), Hanwha Ocean (9.90%), Hyundai Mobis (2.94%), and HD Korea Shipbuilding & Offshore Engineering (5.58%).

The benchmark KOSPI rose 0.41% to close at 7,848 on Friday, extending gains for a second straight session and tracking overnight gains on Wall Street amid optimism over US-Iran talks. Iran said the latest US proposal had helped narrow differences between the two sides, fueling hopes for a peace deal and easing concerns over energy supply disruptions through the Strait of Hormuz. At the same time, continued strength in South Korea’s semiconductor sector and improving domestic sentiment underpinned the broader market rally. However, gains remained capped by persistent foreign investor selling and rising concentration risk, with Samsung Electronics and SK hynix now accounting for nearly half of the benchmark index’s market capitalization. Samsung Electro-Mechanics (10.6%), Doosan Enerbility (2.8%), and Hanwha Aerospace (1.2%) led gains, while Samsung Electronics (-2.3%), SK Hynix (-0.2%), and Hyundai Motor (-1.5%) declined. South Korean markets will be closed May 25 for a public holiday.