South Korean Shares Extend Gains

The benchmark KOSPI rose 0.88% to close at 6,913 on Friday, extending gains from the previous session, as strength in major chipmakers and robust semiconductor exports supported investor sentiment. Samsung Electronics and SK hynix climbed 3.87% and 2.19%, respectively, amid continued expectations of shareholder returns. Strong semiconductor exports provided further support, with chip shipments nearly tripling to $26 billion in the first 20 days of August, reinforcing expectations that AI-driven demand will continue to support Korea's key technology sector. Gains were also recorded in KB Financial Group (2.63%), Shinhan Financial Group (3.17%), and SK Inc (2.99%). Meanwhile, renewed gains in US Treasury yields limited the upside, as investors grew skeptical that the Treasury's expanded bond buyback plan would provide lasting relief from elevated borrowing costs. Brent crude also rose more than 2% amid renewed US-Iran tensions, raising concerns over inflation and higher energy costs.

The benchmark KOSPI climbed 5.89% to close at 6,853 on Thursday, rebounding sharply from the previous session, as easing US Treasury yields helped restore risk appetite. The retreat in long-term Treasury yields followed the US Treasury’s announcement that it would significantly increase debt buybacks, easing concerns over rising borrowing costs that had weighed heavily on global equities. At the same time, Wall Street closed higher overnight, providing further support for Korean shares. Chipmakers led the recovery, with Samsung Electronics advancing 9.49% after a report said it plans to announce a shareholder return program exceeding KRW 100 trillion, while SK hynix jumped 12.80% following its record KRW 40 trillion share buyback and cancellation plan. The moves helped support sentiment toward Korean memory stocks and the broader market rebound. Notable gains were also seen in SK Square (11.35%), Samsung C&T (8.07%), Samsung SDI (2.77%), and SK Inc (3.63%).

The benchmark KOSPI fell 5.80% to close at 6,471 on Wednesday, extending losses from the previous session, as a global bond selloff weighed on investor sentiment. The US 30-year Treasury yield climbed to its highest level since 2007, while long-term bond yields also reached multi-year highs in Japan and Europe, raising concerns over higher borrowing costs and pressuring growth and technology stocks. The global technology selloff hit Korean chipmakers particularly hard, with Samsung Electronics and SK hynix plunging 7.54% and 9.93%, respectively, tracking losses in US semiconductor stocks. Losses were also recorded in SK Square (-11.54%), Hyundai Motor (-5.17%), KB Financial Group (-1.72%), Kia Corporation (-3.21%), and HD Hyundai Heavy Industries (-3.06%). At the same time, higher oil prices added to inflation concerns after President Donald Trump said the US is not in talks with Iran, while stalled peace efforts raised fears of further disruptions to oil supplies from the Middle East.