Value context and insight. lkm@koreatimes.co.kr
KOSPI surpasses 3,500 points for 1st time amid foreign investors’ AI optimism
An electronic trading board at Hana Bank headquarters in central Seoul shows the benchmark KOSPI gaining 93.38 points, or 2.7 percent, to an all-time closing high of 3,549.21 points, Thursday, breaking the 3,500 mark for the first time in history. Yonhap
By Lee Kyung-min
The benchmark KOSPI surged past the 3,500-point threshold for the first time in history, Thursday, gaining 93.38 points, or 2.7 percent, to close at 3,549.21 points — just a day before the start of the Chuseok holiday.
The performance was underpinned by strong foreign capital inflows amid accelerating global artificial intelligence (AI) leadership from Korea’s two tech giants — Samsung Electronics and SK hynix.
The main index opened strong at 3,525.48 points, up 2.02 percent from the previous day’s close, immediately eclipsing both the previous record closing high of 3,486.19 set on Sept. 23 and the intraday peak of 3,497.95 recorded on Sept. 24.
The KOSPI surged further to an intraday high of 3,565.96 points and sustained the 3,500 level through the close.
Propelling the rally were foreign investors, who net purchased a total of 3.13 trillion won ($2.24 billion).
Meanwhile, individual investors took profits by net selling 3.06 trillion won. Institutional investors, despite national pension funds’ net purchases of 45 billion won, collectively showed a net selling bias of 69 billion won.
However, this was insufficient to dampen the overall upward momentum.
Boosting sentiment was Wednesday’s announcement that OpenAI CEO Sam Altman signed strategic partnerships with Samsung Electronics and SK hynix during a visit to Seoul.
This is part of the company's global AI infrastructure initiative known as the Stargate Project.
Correspondingly, Samsung Electronics stocks topped 90,000 won, up more than 4.65 percent mid-trading. SK hynix soared above 400,000 won, rising over 12 percent.
They closed at 89,000 won and 395,500 won, up 3.49 percent and 9.86 percent, respectively.
Along with these two, other large-cap stocks such as LG Energy Solution, Samsung Biologics and Hanwha Aerospace saw moderate gains during the session.
President Lee Jae Myung, who met with Altman at the presidential office in Seoul, Wednesday, commented on the KOSPI breaking the 3,500-point mark, saying, “This upward trend itself is unlikely to change easily."
“There are various reasons for the KOSPI surpassing 3,500 points, but it appears that the people are regaining hope and enthusiasm," the president said as he presided over a senior aides’ meeting at the presidential office, Thursday.
He added, "It feels like a fresh start is possible across many sectors."
Prior to the Lee-Altman meeting, the Ministry of Science and ICT signed a memorandum of understanding with OpenAI to transform Korea into a leading AI hub in the Asia-Pacific region.
The agreement includes cooperation on strengthening the country's AI ecosystem, fostering AI-based regional economic development, accelerating AI adoption in public services and nurturing AI experts and startups.
The news has significantly improved investor confidence in Korea’s position within the global AI supply chain.
Despite the Korean currency remaining weak in the 1,400 won range against the U.S. dollar, foreign investors are increasing holdings in the two semiconductor powerhouses.
Brokerages are revising their forecasts upward for the remainder of the year.
KB Securities said the KOSPI would trade within a 3,200–3,800 range in the fourth quarter.
Daol Investment & Securities had a more conservative outlook of between 3,030 and 3,650.
However, sustainability remains a concern.
Analysts say the current rally relies heavily on foreign capital, signaling a potentially sizable outflow upon a market correction.
Retail investors net sold over 18.4 trillion won in KOSPI-listed stocks from July to September, the largest quarterly net outflow since 1998.
On Tuesday, Democratic Party of Korea (DPK) leader Jung Chung-rae visited the Korea Exchange, vowing full support to help realize Lee’s campaign pledge of achieving the “KOSPI 5,000 era.”
“Since the launch of the Lee administration, investor confidence in the country’s stock market is strengthening. The DPK will combine legislative and policy efforts to ensure the KOSPI 5,000 objective during Lee’s tenure,” he said.