Seoul stocks experienced a significant surge on Friday, with the benchmark Korea Composite Stock Price Index (KOSPI) climbing over 4 percent. Investors actively acquired shares in leading tech companies, fueled by mounting optimism for a swift resolution to the conflict between the United States and Iran.
The KOSPI closed robustly, gaining 359.67 points, or 4.63 percent, to settle at 8,123.62. This strong finish followed an intraday peak of 8,434.40, though the index pared some earlier gains due to profit-taking activities as the trading session concluded.
Market activity was notable, with a heavy trade volume of 490.3 million shares, collectively valued at 51.1 trillion won ($33.6 billion). Advancing stocks significantly outnumbered decliners, with 753 winners against 144 losers, reflecting broad-based positive sentiment across the South Korea stock market.
Investor confidence soared after US President Donald Trump announced on Thursday that a “great settlement” had been reached to resolve the ongoing US-Iran conflict. The deal is expected to be signed as early as this weekend, potentially in Europe. Further bolstering these hopes, media outlet Axios reported the deployment of four US Air Force C-17 planes to Europe, likely facilitating travel for Vice President J.D. Vance, and raising the prospect of a signing ceremony in Geneva, Switzerland.
“Market sentiment notably improved as foreign investors ended a 25-session selling streak, shifting to net buying on anticipations for peace negotiations,” remarked Lee Kyoung-min, an analyst at Daishin Securities. This influx of foreign capital played a crucial role in driving the KOSPI rally.
However, the overall market upside was somewhat contained by circulating reports that major global banks are limiting hedge funds’ leveraged investments in South Korea’s two prominent semiconductor heavyweights: Samsung Electronics and SK hynix, as noted by Lee.
Combined net purchases from foreign and institutional investors totaled a substantial 4.4 trillion won, highlighting their renewed interest in the market. In contrast, retail investors net sold 4.3 trillion won worth of shares.
Across the board in Seoul, shares posted impressive gains. Market leader Samsung Electronics saw its stock price jump 7.86 percent to 322,500 won, while rival chipmaker SK hynix advanced 2.33 percent to 2,150,000 won.
Highlighting significant investor interest, semiconductor equipment manufacturer Hanmi Semiconductor surged an impressive 24.05 percent to 361,000 won. This sharp rise followed the company’s regulatory filing indicating its intention to invest in SpaceX, Elon Musk’s space exploration company, which is slated for its Nasdaq debut on Friday.
The shipbuilding sector also experienced a positive trend as investors sought out value opportunities. Hanwha Ocean added 7.85 percent to 112,700 won, and HD Hyundai Heavy Industries increased by 0.62 percent to 650,000 won.
Other key companies also recorded strong performances: portal operator Naver soared 10.27 percent to 247,000 won, financial firm KB Financial climbed 6.4 percent to 161,200 won, and top automaker Hyundai Motor added 1.68 percent to reach 607,000 won.
