South Korean Shares Extend Gains

The benchmark KOSPI rose more than 4% to around 7,620 on Friday, extending gains from the previous session as chipmakers tracked an overnight rally in global semiconductor stocks. Tech shares led the advance, with Samsung Electronics climbing almost 4.0%, while Samsung Electro-Mechanics advanced over 9.0%. Other notable performers included SK hynix (1.1%), SK Square (5.2%), Hyundai Motor (3.3%), LG Energy Solution (4.3%), Kia Corporation (2.1%), KB Financial Group (7.2%), and Doosan Enerbility (7.9%). Investor confidence was also supported by easing oil prices despite renewed US-Iran tensions, as reports that Iran sought negotiations helped ease concerns about prolonged supply disruptions and inflationary pressures. Additionally, President Lee Jae Myung and Mongolian President Ukhnaa Khurelsukh agreed to deepen cooperation in critical minerals, trade, and advanced technologies, reinforcing optimism over South Korea's long-term supply chain security and high-tech industries.

The benchmark KOSPI rose 0.62% to close at 7,292 on Thursday, recovering modestly from an over one-month low as chipmakers led the gains. Semiconductor shares found support after reports that SK hynix's planned US ADR offering was more than seven times oversubscribed, reflecting strong investor demand for the AI memory chipmaker. SK hynix climbed 5.83%, while Samsung Electronics edged up 0.36%, after suffering sharp declines a day earlier, helping lift the index. Other notable gainers included SK Square (4.80%), SK Inc. (2.36%), LS Electric Co. (2.13%), and Hyosung Heavy Industries (3.87%). Additionally, sentiment was supported after the Asian Development Bank raised South Korea's 2026 growth forecast to 2.6% from 1.9%, citing robust global AI demand and strong semiconductor exports as key drivers of economic growth. Meanwhile, renewed US-Iran tensions kept investors cautious as higher oil prices fueled inflation concerns and weighed on global risk appetite.

The benchmark KOSPI fell 5.35% to close at 7,247 on Wednesday, hitting its lowest level in over a month as a broad sell-off in semiconductor stocks followed overnight losses on Wall Street. Chipmakers came under pressure after investors questioned the sustainability of the AI-driven spending boom despite Samsung Electronics' strong quarterly earnings, dragging global semiconductor shares lower. Investors also remained cautious as escalating tensions in the Middle East boosted oil prices and dampened global risk appetite following fresh US strikes on Iran and attacks near the Strait of Hormuz. Losses were led by Samsung Electronics (-5.91%), SK Hynix (-5.00%), SK Square (-6.27%), HD Hyundai Heavy Industries (-7.07%), Hanwha Aerospace (-8.20%) and Doosan Enerbility (-9.44%). Meanwhile, South Korean authorities said they would closely monitor risks to market stability as heightened volatility in heavyweight chip stocks and single-stock leveraged ETFs continued to fuel sharp market swings.