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.
KOSPI jumps nearly 4% as AI investment sentiment improves
The KOSPI and Kosdaq are displayed in the dealing room of Hana Bank in Seoul, Wednesday. The benchmark KOSPI closed at 6,598.26, up 3.76 percent from the previous session, while the secondary Kosdaq closed at 799.59, up 2.42 percent. Yonhap
By Lee Yeon-woo
Korea's two main stock markets rallied in tandem Wednesday, as renewed optimism over artificial intelligence (AI) investment lifted the KOSPI and continued retail buying fueled the Kosdaq's advance.
The benchmark KOSPI closed at 6,598.26, up 3.76 percent from the previous session. The index opened 3.85 percent higher and soon triggered a buy-side sidecar, marking the 22nd such activation this year.
Institutional and retail investors were net sellers of 280.2 billion won ($196.6 million) and 1.18 trillion won worth of shares, respectively. Foreign investors were net buyers of 1.45 trillion won.
SK hynix rose 5.77 percent to close at 1,668,000 won, while Samsung Electronics gained 2.5 percent to finish at 246,000 won.
The two market heavyweights posted strong gains as investor confidence in the semiconductor sector remained firm. Hyperscalers continued to ramp up AI spending while demonstrating tangible returns on those investments.
Sentiment was further boosted by reports that the world's three major memory chipmakers have already sold out their 2027 DRAM and high-bandwidth memory production capacity.
External developments also added to the risk-on mood. U.S. Treasury Secretary Scott Bessent said he expected an agreement to be reached with Iran to keep the Strait of Hormuz open. WTI crude futures subsequently fell to around $75 a barrel, further supporting demand for risk assets.
Improved sentiment toward AI infrastructure investment also lifted IT hardware stocks and semiconductor shares. Power equipment makers extended their gains as demand linked to AI infrastructure remained robust. Construction stocks also advanced as investors highlighted their attractive valuations relative to earnings.
The Kosdaq extended its winning streak, rising 2.42 percent to close at 799.59. The index opened 1.82 percent higher and briefly climbed above the 800 mark. After triggering buy-side sidecars for three consecutive sessions, the Kosdaq continued to advance on Wednesday, supported by upbeat developments in the biotechnology sector.
The won-dollar exchange rate closed at 1,424.5 won per dollar, down 8.0 won from the previous session.