KOSPI hits fresh record above 8,000 on foreign buying, easing oil fears

Employees celebrate in the dealing room of Hana Bank headquarters in Seoul, Tuesday, after KOSPI closed above the 8,000-point mark for the first time on a closing basis. The benchmark index closed at 8,047.51, up 199.80 points, or 2.55 percent, from the previous session. Korea Times photo by Shim Hyun-chul

The benchmark KOSPI hit another record Tuesday, closing above the 8,000-point milestone for the first time.

The previous closing high stood at 7,981.41, set on May 14.

After opening at 8,070.91, up 223.20 points, or 2.84 percent, from the previous session, the index maintained strong upward momentum and climbed to 8,131.15, surpassing the previous intraday high of 8,046.78 recorded on May 15. It eventually closed at 8,047.51, up 199.80 points, or 2.55 percent, from the previous session.

Foreign investors began the session as net sellers but later shifted to net buying, marking their first net purchase in 13 trading sessions.

Heavyweight shares led the rally, with Samsung Electronics advancing 2.22 percent, SK hynix surging 5.72 percent and Hyundai Motor gaining 5.19 percent.

Investor sentiment improved on hopes for progress in ceasefire negotiations between the United States and Iran and expectations that the Strait of Hormuz would remain open. Reports suggested the two sides were nearing a memorandum of understanding that could pave the way for a final agreement.

Easing geopolitical concerns pushed oil prices lower, removing one of the major overhangs on Korean equities.

Overnight, Brent crude futures for July delivery tumbled 7.15 percent to settle at $96.14 a barrel, while July West Texas Intermediate crude futures declined 6.51 percent to close at $90.31 per barrel.

Reflecting improved market sentiment, the Korean won strengthened against the U.S. dollar. In Seoul trading, the local currency opened at 1,515 won per dollar, 2.2 won stronger than the previous close, and finished onshore trading at 1,504.3 won, up 12.9 won from the previous session.

Geopolitical jitters briefly resurfaced before the opening bell after reports emerged that U.S. forces had launched airstrikes against select targets in southern Iran on self-defense grounds. Despite this, markets appeared more focused on diplomatic developments than renewed military tensions.

“The Trump administration quickly clarified after the strikes that, although military clashes had occurred, the current ceasefire framework with Iran remains intact, helping to contain fears of a broader conflict,” said Seo Sang-young, an analyst at Mirae Asset Securities.

The secondary Kosdaq market also extended gains. The tech-heavy index opened at 1,189.28, up 28.15 points, or 2.42 percent, and closed at 1,172.52, up 11.39 points, or 0.98 percent, from the previous session.

The junior bourse has now advanced for three consecutive sessions amid expectations of future inflows from the public participation growth fund.

The new fund is part of the 150 trillion won ($99.7 billion) Korea National Growth Fund program launched late last year as one of President Lee Jae Myung’s key economic initiatives to foster advanced industries. Market analysts expect the vehicle to channel capital into high-growth sectors such as pharmaceuticals and biotechnology, robotics and aerospace.

“The public participation growth fund is a liquidity-support measure designed to supply fresh capital to unlisted companies and Kosdaq firms listed under the technology-special track,” said Kim Se-bin, an analyst at Yuanta Securities.