South Korean Shares Edge Lower From Record High

The benchmark KOSPI edged down 0.6% to around 8,180 on Thursday, easing from record highs amid uncertainty surrounding US-Iran negotiations. Sentiment weakened after US President Donald Trump said Washington was still “not satisfied” with ongoing talks, while the White House denied reports suggesting progress on reopening the Strait of Hormuz. Brent crude climbed back toward $96 per barrel, weighing on risk appetite. Technology shares retreated after leading recent gains, with Samsung Electronics (-1.1%) moving lower alongside SK Square (-2.2%), HD Hyundai Heavy Industries (-2.7%), and Hanwha Aerospace (-3.0%). Meanwhile, broader sentiment remained supported by optimism over South Korea’s semiconductor sector after the Bank of Korea raised its 2026 growth forecast to 2.6% from 2.0%, citing robust chip-driven exports. The central bank also kept interest rates unchanged for an eighth straight meeting while highlighting persistent inflation and currency risks.

The benchmark KOSPI climbed 2.25% to close at 8,229 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 (3.34%) and SK hynix (10.04%), with SK hynix joining rivals Samsung Electronics and Micron Technology in the $1 trillion market capitalization club. Other notable gainers included SK Square (8.81%), Hyundai Mobis (4.52%), SK Inc. (4.12%), and Alteogen (5.88%). 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%).