South Korean stocks surged for a third consecutive session on Wednesday, driven by strong buying of major semiconductor companies, while the Korean won strengthened slightly against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 233.51 points, or 3.68 per cent, to close at 6,579.04, extending gains of 0.65 per cent and 0.73 per cent recorded in the previous two sessions.
The index opened 1.47 per cent higher and continued to climb as foreign and institutional investors increased their holdings in major semiconductor stocks.
The sharp rise prompted the Korea Exchange to activate a buy-side sidecar at 11:57 a.m., temporarily suspending program trading in KOSPI-listed shares for five minutes.
Trading volume reached 355 million shares, with stocks worth approximately 26.21 trillion won ($18.49 billion) changing hands. Declining stocks outnumbered advancing shares, with 477 falling compared with 378 gainers.
Foreign investors purchased a net 2.83 trillion won worth of shares, while institutional investors bought 527.7 billion won. Retail investors, however, recorded net sales of 3.19 trillion won.
Analyst Lee Kyung-min of Daishin Securities attributed the positive investor sentiment to continued demand for artificial intelligence infrastructure and semiconductors.
“Large order backlogs and new orders reaffirmed that investment in AI infrastructure and semiconductor demand remain solid, stimulating investor sentiment,” Lee said.
Chipmakers Lead Gains
Major technology and semiconductor stocks recorded significant gains during the session.
Samsung Electronics rose 6.68 per cent to 255,000 won per share, while rival chipmaker SK hynix gained 5.54 per cent to reach 1.5 million won.
SK Square, the parent company of SK hynix, climbed 8.36 per cent to 1.02 million won, while Samsung Electro-Mechanics gained 5.78 per cent to 1.34 million won.
Other major companies also finished higher. LG Energy Solution rose 1.13 per cent to 358,500 won, while South Korea’s leading automaker, Hyundai Motor, gained 1.61 per cent to 409,500 won.
The rally came despite weaker performance on Wall Street overnight. The Dow Jones Industrial Average fell 0.34 per cent, while the S&P 500 declined 0.32 per cent and the Nasdaq Composite dropped 0.60 per cent.
Won Strengthens Against Dollar
The South Korean won also strengthened modestly against the US dollar.
The currency was quoted at 1,415.7 won per dollar at 3:30 p.m., representing a gain of 0.3 won from the previous day’s close.
Meanwhile, South Korean government bond prices rose, pushing yields lower. The yield on three-year government bonds fell 1.7 basis points to 3.791 per cent, while the benchmark five-year government bond yield declined by the same margin to 4.025 per cent.
The strong performance of South Korea’s stock market reflects continued investor optimism surrounding the global semiconductor industry, particularly expectations of sustained spending on artificial intelligence infrastructure and related technologies.
