Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
KOSPI eyes further gains on boost from Korea-US tariff deal
An electronic board at Hana Bank headquarters shows the benchmark KOSPI hitting an all-time intraday high of 4,138.94 points, Thursday. The market fell below 4,100 points later in the session to close at 4,086.89 points, up 0.14 percent from the previous day. Yonhap
By Yi Whan-woo
The Seoul stock market is expected to accelerate its gains after surpassing the 4,000-point mark, with the long-awaited conclusion of the Korea-U.S. tariff deal likely to support further growth, analysts said Thursday.
Experts noted that the bilateral deal clears up uncertainties for the export-reliant Korean economy, as details on levies for automobiles, shipbuilding and related companies were finalized during the summit between the leaders of the two countries in Gyeongju, North Gyeongsang Province, Wednesday.
The conclusion came after the benchmark KOSPI topped an unprecedented 4,000 points on Monday, supported by investment sentiment surrounding the 2025 Asia-Pacific Economic Cooperation (APEC) meetings in Gyeongju.
“The investment confidence surrounding the APEC meetings was somewhat vague, but it has become more concrete after the Korea-U.S. summit and the conclusion of the tariff negotiations,” said Jung Eui-jung, head of the Korean Stockholders’ Alliance.
He added that the KOSPI could aim for 4,100 points within a week.
The KOSPI closed at 4,086.89 points on Thursday, gaining 0.14 percent from the previous day’s close. It opened at 4,105.95 points and reached an intraday all-time high of 4,138.94 points before settling below 4,100 points later in the session.
Several financial firms raised their target levels for the benchmark index, with some forecasts suggesting the KOSPI could reach not only 5,000 points but even 6,000 points.
KB Securities set its 12-month KOSPI target at 5,000 points, with analyst Lee Eun-taek explaining that the Korea-U.S. agreement is expected to ease burdens on sectors that had faced disadvantages compared with competitors in countries such as Japan.
Lee also highlighted the $200 billion U.S. investment package, noting that it “could further enhance corporate growth prospects as it leads to the expansion of Korean companies’ operations in the U.S.”
Global investment bank JP Morgan also raised its 12-month KOSPI target to 5,000 points, noting that under a bullish scenario, the index could rise as high as 6,000 points. The bank recommended increasing exposure during market corrections.
Meanwhile, Thursday’s KOSPI gains were largely driven by retail investors, who net-purchased more than 900 billion won ($630.78 million) in hopes of benefiting from the post-tariff deal rally. The net sales of foreign investors and institutional investors amounted to roughly 113 billion won and 830 billion won, respectively.
Samsung Electronics and SK hynix continued to contribute strongly as the two largest market bellwethers, together accounting for more than 25 percent of KOSPI’s total market capitalization.
Samsung Electronics rose 3.58 percent to remain above the 100,000-won threshold for the second consecutive day, following an all-time high quarterly sales record of 86.06 trillion won in the third quarter and a three-year-high operating profit of 12.16 trillion won.
SK hynix climbed 1.79 percent to 568,000 won, backed by record third-quarter earnings of 24.4 trillion won in sales and 11.38 trillion won in operating profit.
Automobile, shipbuilding and related stocks also gained following the tariff deal.
Hyundai Motor rose 2.71 percent, and its affiliate Kia increased 0.35 percent, as the two companies will benefit from the reduction of sector-specific automobile tariffs from 25 to 15 percent, confirming the initial Aug. 25 agreement.
Hanwha Ocean gained 6.9 percent and Samsung Heavy Industries rose 1 percent, benefiting from the $150 billion shipbuilding investment package under the so-called Make America Shipbuilding Great Again project.