South Korean Shares Extend Rally on Chip Optimism

The benchmark KOSPI climbed nearly 5% to around 8,880 on Thursday, extending gains from the previous session as semiconductor stocks rallied on renewed optimism over AI-driven demand. Investor sentiment was boosted after Micron Technology reported stronger-than-expected quarterly results and issued an upbeat revenue forecast, reinforcing expectations of robust demand for memory chips. Chip heavyweights Samsung Electronics and SK hynix advanced sharply by nearly 5% and 8%, respectively. SK hynix also gained support from plans to raise up to W45.5 trillion through a Nasdaq ADR listing to fund AI chip capacity expansion and related investments. Other notable gainers included SK Square (3.0%), HD Hyundai Heavy Industries (1.7%), Kia Corporation (1.4%), and KB Financial Group (1.8%). At the same time, improving shipping conditions in the Strait of Hormuz eased energy supply concerns and supported risk appetite across regional markets.

The benchmark KOSPI rose 3.26% to close at 8,471 on Wednesday, recovering part of the losses from the previous session as investors returned to semiconductor stocks following a sharp market selloff. Chipmakers led the rebound, with Samsung Electronics and SK Hynix advancing 9.11% and 2.74%, respectively, amid optimism over AI-driven memory demand and ahead of key earnings updates from the sector, including Micron's results later this week. Other gainers included Hanwha Aerospace (1.68%), LG Energy Solution (1.10%), Kia Corporation (1.31%), and Doosan Enerbility (1.85%). Sentiment was also supported by signs of improving risk appetite after oil prices eased as concerns over disruptions in the Strait of Hormuz softened. Meanwhile, MSCI kept South Korea in its emerging-market category, citing ongoing foreign-exchange market accessibility issues and delaying progress toward developed-market status.

The benchmark KOSPI plunged 9.99% to close at 8,204 on Tuesday, retreating sharply from record highs and tracking overnight losses on Wall Street as a selloff in major technology stocks weighed on sentiment. Investors also remained cautious over elevated valuations and increasing regulatory scrutiny of leveraged products tied to South Korea's semiconductor sector. Foreign investors were heavy net sellers, adding to downward pressure. Losses were led by technology heavyweights, with SK Hynix (-11.78%) and Samsung Electronics (-11.17%) tumbling, alongside SK Square (-5.18%), Hyundai Motor (-12.05%), LG Energy Solution (-6.10%), HD Hyundai Heavy Industries (-7.23%), and Kia Corp (-8.85%). Meanwhile, investors continued to monitor developments in the AI semiconductor industry, with SK Hynix recently overtaking Samsung Electronics as South Korea's most valuable listed company, while Samsung reported HBM4 sales exceeding $1 billion within four months of its launch.