South Korean stocks hit record high as won rallies
South Korean stocks climbed to a fresh record on Wednesday, moving closer to the 5,200-point mark, driven by strong gains in chipmakers and battery stocks.
The Korean won also surged sharply against the U.S. dollar, News.Az reports, citing Yonhap.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 85.96 points, or 1.69 percent, to close at 5,170.81.
The KOSPI extended its bull run after surpassing the key 5,000-point threshold on Tuesday and has now risen nearly 20 percent since Jan. 2.
Trading activity was heavy, with volume reaching 578.1 million shares worth 29.6 trillion won ($20.8 billion). Decliners slightly outnumbered advancers, with 440 losing stocks versus 429 gainers.
Retail investors were net buyers, purchasing 1.2 trillion won worth of shares. In contrast, foreign investors and institutions were net sellers, unloading 135.1 billion won and 1.04 trillion won, respectively.
“We are seeing persisting anticipation that the semiconductor cycle and demand for artificial intelligence (AI) data centers will continue,” said Lee Kyoung-min, an analyst at Daishin Securities.
South Korea’s two chip giants — Samsung Electronics and SK hynix — are scheduled to release their fourth-quarter earnings later this week. Market watchers widely expect results to exceed expectations, with local brokerages already upgrading operating profit forecasts for both firms.
Investor sentiment was further boosted by remarks from Donald Trump. On Tuesday, Trump said his administration would “work something out” with Seoul, signaling a more conciliatory stance after previously threatening to impose “reciprocal” tariffs of up to 25 percent on South Korea.
Most large-cap stocks ended higher. Samsung Electronics rose 1.82 percent to a record 162,400 won, while SK hynix surged 5.12 percent to an all-time high of 841,000 won.
Battery and biotechnology shares also advanced. LG Energy Solution gained 5.51 percent to 431,000 won, while Celltrion climbed 3.31 percent to 218,500 won.
In contrast, some IT stocks fell, partly due to disagreements between the government and the legislature over a proposed digital asset bill. Portal operator Naver dropped 1.42 percent to 277,500 won, and messaging app operator Kakao slid 0.64 percent to 61,800 won. Both firms are considered key players in South Korea’s stablecoin sector.
Meanwhile, the local currency was quoted at 1,422.5 won per U.S. dollar, strengthening by 23.7 won from the previous session’s close. This marked the won’s strongest level since Oct. 15, when it finished at 1,421.3 won against the greenback.
By Nijat Babayev
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