Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Chip giants push KOSPI past 9,000, masking broader market weakness
Hana Bank employees celebrate the benchmark KOSPI’s historic breakthrough above the 9,000 mark at the bank’s dealing room in Seoul, Thursday. KOSPI closed at 9,063.84, up 2.25 percent from the previous session, fueled by continued strong rallies in SK hynix and Samsung Electronics. Korea Times photo by Shim Hyun-chul
By Lee Yeon-woo
KOSPI set another record on Thursday, surpassing the 9,000 mark for the first time on a strong rally in large-cap semiconductor and IT stocks. However, the broader market continued to show signs of deepening polarization, with small- and mid-cap stocks increasingly left behind.
According to the Korea Exchange, the benchmark index closed at 9,063.84, up 2.25 percent from the previous session. The index briefly rose as high as 9,106.07 before paring some gains ahead of the closing bell.
Foreign investors led the rally, buying a net 1.44 trillion won ($942.6 million) worth of shares. Retail and institutional investors, meanwhile, offloaded a net 543.9 billion won and 680.3 billion won, respectively.
The secondary Kosdaq market closed at 1,000.93, down 3.01 percent. The index was dragged lower by foreign and institutional selling, despite retail investors’ net purchases.
The exchange rate stood at 1,527.1 won per dollar, with the Korean currency depreciating by 13.7 won from the previous session, driven by dollar strength following the hawkish Federal Open Market Committee (FOMC) meeting on Wednesday (local time).
Buying was concentrated in large-cap semiconductor and IT stocks, highlighting clear sector divergence. Daishin Securities said only about 100 stocks advanced, while roughly 810 declined.
“KOSPI has entered a typical earnings- and policy-driven market phase,” Daishin Securities analyst Lee Kyoung-min said. “Given the continued upward trend in forward earnings per share, investors need to keep the door open for further gains until the earnings outlook begins to weaken.”
SK hynix hit another record high, closing at 2,685,000 won per share, up 6.51 percent from the previous session. Samsung Electronics closed at 362,500 won, gaining 4.62 percent. SK Square also rose 6.52 percent and Samsung Electro-Mechanics went up 8.27 percent.
In contrast, other sectors were largely sidelined and ended broadly lower, with major stocks leading the decline.
Defense stocks lost ground, with Hanwha Systems falling 8.74 percent and LIG Defense & Aerospace dropping 6.95 percent. Shipbuilding shares followed suit, as HMM lost 7.47 percent and Hanwha Ocean shed 6.01 percent.
Construction shares also weakened on profit-taking after recent gains driven by expectations for Middle East reconstruction. Daewoo E&C dropped 7.46 percent, Samsung E&A fell 5.33 percent and DL E&C lost 6.82 percent.
Analysts said the rally maintained its momentum as the FOMC meeting largely aligned with market expectations. News that U.S. President Donald Trump had signed a truce agreement with Iran extended the drop in global oil prices, further boosting investors’ appetite for risk assets.
The most bullish KOSPI forecast currently offered by brokerages stands at 12,000. Goldman Sachs raised its target for the benchmark index to 12,000 from 9,000 on June 3, citing robust earnings growth among Korean companies and a prolonged semiconductor upcycle. Among local brokerages, Hyundai Motor Securities and IBK Securities have also suggested the 12,000 level under their bullish scenarios.