Seoul shares experienced a significant rally on Monday, surging by over 4 percent, fueled by renewed optimism surrounding the artificial intelligence (AI) sector. The South Korean currency also strengthened against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) soared by 208.9 points, or 4.1 percent, to close at 5,298.04.
Trading volume was robust, with 612.4 million shares changing hands, valued at 26.2 trillion won ($17.9 billion). Advancing stocks significantly outnumbered declining ones, with a ratio of 714 to 173.
Foreign investors made net purchases of 441.8 billion won, while retail investors offloaded a net 3.29 trillion won. Institutions were net buyers, acquiring 2.7 trillion won worth of shares.
Investor sentiment improved as the recent correction in technology stocks on Wall Street, triggered by concerns about long-term profitability and the financial implications of AI investments, was perceived as overdone.
Analysts predict continued market volatility in Seoul ahead of the Lunar New Year holiday, observed from February 16th to 18th.
“Given the market’s need to digest short-term pressures, such as the upcoming extended holiday, investors are advised to assess the direction of the index and key stocks after next week’s holiday,” advised Han Ji-young, a researcher at Kiwoom Securities.
Industry leader Samsung Electronics witnessed a substantial increase of 4.92 percent, reaching 166,400 won, following reports of the company commencing mass production of the world’s first sixth-generation high-bandwidth memory (HBM), known as HBM4, this month. Semiconductor giant SK hynix also rose by 5.72 percent to 887,000 won.
Leading battery manufacturer LG Energy Solution advanced by 2.47 percent to 394,500 won, while Samsung SDI increased by 2.7 percent to 380,000 won.
Amorepacific, a prominent cosmetics company, soared by 20.25 percent to 165,100 won, driven by strong overseas sales and robust earnings reported for 2025 last week.
Samsung C&T, a major trading firm, climbed by 7.94 percent to 312,500 won. Shinsegae, the operator of South Korea’s second-largest department store chain, surged by 7.74 percent to 355,000 won.
