South Korean equities reached a new historic high on Tuesday, completely recovering from earlier losses incurred after the US-Iran conflict emerged. This surge was driven by investor optimism surrounding anticipated progress in peace talks between the two nations and strong performance from key tech heavyweights. The Korean won also strengthened significantly against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) achieved a new record closing high of 6,388.47 points, marking a robust gain of 169.38 points, or 2.72 percent, during Tuesday’s trading session.
Trading activity was exceptionally strong, with a total volume of 784.2 million shares changing hands, amounting to a substantial 30.5 trillion won (approximately $20.8 billion). Market breadth remained positive, as winning stocks outpaced losing ones, with 455 advancing issues against 408 declining.
This significant rally saw the KOSPI index completely recover from the downturn experienced since the start of the US-Iran conflict in late February. It notably surpassed its previous peak of 6,307.27 points recorded on February 26, cementing its full rebound.
“The KOSPI’s robust advance is significantly attributed to sustained corporate earnings momentum among South Korean companies,” stated Lee Kyoung-min, a prominent analyst at Daishin Securities.
Lee further elaborated that the local stock market is undergoing a re-rating, fueled by an increasing global appetite for riskier assets. This trend is particularly evident from offshore investors, who have been actively acquiring South Korea’s heavyweight equities.
Specifically, foreign investors demonstrated strong confidence, net purchasing over 1.3 trillion won worth of Korean stocks. In contrast, retail investors were net sellers, offloading 1.9 trillion won.
Meanwhile, institutional investors also registered as net sellers, divesting 737.7 billion won from the market.
In geopolitical news, the United States and Iran remain engaged in discussions regarding a second round of peace talks, as the deadline for their two-week ceasefire approaches its expiration.
US President Donald Trump indicated that the ceasefire deadline is unlikely to be extended, heightening expectations that Iran may soon commit to formal negotiations, a development closely watched by global markets.
Back in Seoul, the positive market sentiment was broadly reflected, with the majority of large-capitalization shares closing higher.
Among individual stock performances, chip giant Samsung Electronics saw its shares rise by 2.1 percent, closing at 219,000 won. Its competitor, SK Hynix, surged by 4.97 percent, achieving a new record high of 1,224,000 won, underscoring strong demand in the semiconductor sector.
The battery manufacturing sector also experienced significant bullishness, propelled by sustained growth momentum in the energy storage system (ESS) business and recent announcements of substantial supply deals secured by leading Korean firms.
Notably, LG Energy Solution shares climbed an impressive 11.42 percent to 478,000 won, and Samsung SDI soared by 19.89 percent to 645,000 won. Both companies independently confirmed securing major contracts to supply advanced batteries to the prestigious German luxury car manufacturer Mercedes-Benz, highlighting their global competitiveness.
Hyundai Motor, South Korea’s leading automaker, also posted gains, advancing 3.61 percent to 546,000 won. Conversely, defense giant Hanwha Aerospace saw a decline of 2.39 percent, closing at 1,391,000 won, and major financial conglomerate KB Financial experienced a slight dip of 0.31 percent, settling at 160,400 won.
