South Korean Shares Close at Record High

The benchmark KOSPI rose 0.15% to close at a record high of 8,801 on Tuesday, as gains in technology stocks offset profit-taking and broader market caution. Samsung Electronics climbed 3.15%, while SK Square surged 6.13%. Sentiment remained supported by optimism over artificial intelligence demand after Nvidia unveiled a new AI-focused chip and discussed AI memory cooperation with SK Group, reinforcing expectations for sustained strength in South Korea's semiconductor sector. Still, gains were limited by concerns over rising inflation and elevated oil prices. South Korea's annual inflation rate accelerated to 3.1% in May, the highest in more than two years, reinforcing expectations that the Bank of Korea could maintain a hawkish policy stance for longer. Investors also monitored renewed uncertainty surrounding US-Iran negotiations, which kept energy prices elevated and weighed on risk sentiment.

The benchmark KOSPI fell nearly 2% to around 8,630 on Tuesday, retreating from record highs as investors locked in profits amid renewed Middle East tensions and mounting inflation concerns. Oil prices remained elevated after reports that Iran suspended negotiations with the US, fueling concerns over potential disruptions to global energy supplies and adding pressure on inflation. South Korea's annual inflation rate accelerated to 3.1% in May, the highest in over two years, reinforcing bets that the Bank of Korea could maintain a hawkish policy stance for longer. Losses were seen in SK Hynix (-2.3%), SK Square (-1.9%), Hyundai Motor (-5.3%), Hyundai Mobis (-5.9%), and Doosan Enerbility (-5.5%). Still, declines were partly tempered by continued optimism over artificial intelligence demand after Nvidia unveiled a new AI-focused chip and CEO Jensen Huang met SK Group Chairman Chey Tae-won to discuss AI memory cooperation. Samsung Electronics gained 2.4%, while LG Energy Solution rose 2.5%.

The benchmark KOSPI climbed 3.68% to close at 8,788 on Monday, hitting a fresh record high amid strong semiconductor exports and continued AI-driven demand. South Korea’s exports surged 53% year-on-year to a record $87.8 billion in May, led by a 169% jump in semiconductor shipments, reinforcing optimism over the sector’s earnings outlook. Samsung Electronics led the advance, soaring 10.09%, while LG Electronics jumped 29.86% as investors looked ahead to Nvidia CEO Jensen Huang’s visit to South Korea later this week on expectations of AI and semiconductor partnership opportunities. Additional support came from record highs on Wall Street, fueled by sustained enthusiasm for AI infrastructure spending. Other notable gains included SK Hynix (1.29%), SK Square (1.87%), Hyundai Motor (3.73%), Doosan Enerbility (1.23%), and KB Financial Group (1.00%). However, lingering uncertainty surrounding US-Iran negotiations and higher oil prices kept broader geopolitical and inflation risks in focus.