Kospi Extends Rally, Hits New High

South Korea’s benchmark Kospi index reached a new all-time high on Tuesday, crossing the 6,700-point mark during intraday trading. This robust upward momentum positions the index to swiftly approach the significant 7,000-point threshold, signaling strong investor confidence in the market’s trajectory.

Opening strong at 6,646.8 points, up 0.48 percent from its prior close, the Kospi quickly breached the 6,700 level in early trading. While it soared to an intraday peak of 6,712.73, the index later saw some profit-taking, settling at 6,657.45 by 2:30 p.m., still reflecting a solid 0.64 percent gain for the session.

This latest record underscores the Kospi’s remarkable ascent, following its breakthrough past the 6,600 mark just a day earlier. The index has demonstrated exceptional growth, first closing above the historic 5,000-point milestone on January 27, then surpassing the 6,000-level on February 25. Now, just over two months later, it is setting its sights firmly on the 7,000-point target, showcasing an unprecedented rally.

The resurgence in foreign investor sentiment has been a key driver behind the Kospi’s rally. Despite earlier geopolitical concerns, such as the Iran war, which led overseas investors to offload over 35 trillion won ($23.5 billion) worth of shares in March, there has been a significant shift. This month, foreign investors have turned into net-buyers, acquiring a net 3.39 trillion won worth of stocks up to the previous trading session, reigniting market confidence.

Once again, the market’s leading charge was spearheaded by the nation’s dominant chip heavyweights.

SK hynix, a key player in the semiconductor sector, saw its shares climb over 1.28 percent, trading robustly around the 1.31 million won mark. In contrast, Samsung Electronics experienced a marginal dip of less than 1 percent, settling near the 222,750 won level.

The insatiable global demand for high-performance memory chips, fueled by the accelerating artificial intelligence (AI) boom, has been instrumental in propelling semiconductor stocks throughout the year. This trend has significantly augmented the market capitalization and overall weight of these two technology giants on the Kospi index.

As of Monday, Samsung Electronics and SK hynix collectively command a dominant 43.6 percent share of the benchmark index’s total market capitalization. This represents a substantial increase of 7.5 percentage points from their 36.1 percent share at the close of last year, illustrating their growing influence.

This combined market share is now nearing the approximately 47 percent held by TSMC in Taiwan’s stock market. Both South Korea and Taiwan are experiencing robust equity market performance, underpinned by the powerful surge in AI-driven semiconductor demand, showcasing a regional trend in tech-led growth.

Beyond semiconductors, Hyundai Motor shares surged an impressive 6.68 percent to 559,000 won. This significant rise followed reports of Hyundai Motor Group Chairman Chung Euisun’s meeting with Demis Hassabis, co-founder and CEO of Google DeepMind and the visionary behind AlphaGo. The meeting ignited expectations for accelerated artificial intelligence development at Boston Dynamics, signaling strategic implications for Hyundai’s future.

In other key sectors, LG Energy Solution also posted gains, climbing 0.7 percent to 467,250 won.

SK Square, the intermediate holding company of SK Group, marked a significant milestone, rising 4.31 percent to 823,000 won and pushing its market capitalization beyond the 100 trillion won mark.

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