South Korean Shares Hit 1-Month High

The benchmark KOSPI climbed more than 2% to around 7,150 on Tuesday, extending gains to its highest level in a month, led by strong advances in major chipmakers. Samsung Electronics rose nearly 3%, while SK hynix jumped more than 7%, as continued strength in the global semiconductor sector and optimism over AI-related demand supported technology stocks. Notable gains were also recorded in SK Square (7.4%), Samsung C&T Corp. (3.3%), LG Electronics (1.6%), SK Inc (4.8%), and LS Electric Co. (5.1%). Meanwhile, global risk appetite was limited, as the expiration of a 60-day US-Iran agreement without an extension heightened concerns over renewed conflict and disruptions to oil supplies through the Strait of Hormuz, pushing oil prices higher and lifting Treasury yields. At the same time, investors continued to monitor South Korea’s trade negotiations with the US, with Seoul seeking to resolve outstanding issues surrounding its planned US$200 billion investment commitment.

The benchmark KOSPI climbed 2.42% to close at 6,978 on Friday, extending gains to a more than three-week high, as strength in US stocks and semiconductor shares lifted sentiment. The S&P 500 reached a fresh record after US producer prices were unchanged in July, below expectations, easing inflation concerns and reducing expectations for further Federal Reserve tightening. The improved risk sentiment supported Asian technology stocks, with SK hynix jumping 3.26% and Samsung Electronics advancing 2.43%. Other notable performers included SK Square (3.31%), Hyundai Motor (8.24%), LG Energy Solution (1.09%), HD Hyundai Heavy Industries (2.82%), Kia Corporation (3.13%), and Hyundai Mobis (7.05%). Meanwhile, the US imposed a 15% tariff on South Korean drones and components and flagged the country for China-linked transshipment risks, adding a potential headwind for exporters. The KOSPI will be closed Monday for a substitute holiday in place of Liberation Day and will resume trading Tuesday.

The benchmark KOSPI rose 3.56% to close at 6,813 on Thursday, extending gains to its highest level in three weeks, as major chipmakers rallied following an overnight rise in US technology stocks. Samsung Electronics climbed 3.72%, and SK hynix surged 5.92%, as renewed optimism over AI-related demand lifted sentiment across the semiconductor sector. Strong gains were also recorded in SK Square (9.08%), Hyundai Motor (2.20%), LG Energy Solution (1.95%), Hanwha Aerospace (2.51%), KB Financial Group (1.27%), Shinhan Financial Group (2.70%), and Hyundai Mobis (2.51%). Additionally, an in-line US inflation reading reduced expectations for a September Federal Reserve rate hike, further supporting risk appetite and technology shares. Separately, the South Korean government’s plan to ease regulations for semiconductor and AI megaprojects, expected to generate KRW 4.2 trillion in investment, provided an additional positive backdrop.