Seoul: Seoul shares surged over 1.5 percent on Tuesday, closing above the historic 4,500 mark driven by gains in semiconductors, brokerages, and shipbuilding sectors. The Korean won, however, weakened against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) jumped 67.96 points, or 1.52 percent, reaching a new record high of 4,525.48. This marked the first time the index surpassed the 4,500-point threshold, building on gains from technology stocks that pushed it beyond the 4,400-point mark in the previous session.

The trading volume was substantial, with 492.84 million shares exchanged, valued at 25.27 trillion won (US$17.4 billion). Despite the overall gain, the market had more losers than gainers, with 482 stocks declining compared to 394 advancing.

Initially, the index opened lower, going against the trend of overnight gains on Wall Street. However, it rebounded as retail investors actively purchased technology and other large-cap stocks. Individuals acquired a net 597.55 billion won in shares, counterbalancing the net selling by foreign and institutional investors, which amounted to 618.83 billion won and 68.93 billion won, respectively.

Foreign investors, who had purchased over 2.8 trillion won in shares during the previous two sessions, turned net sellers on Tuesday. "Technology stocks were weak due to profit-taking in the morning but saw a rise in retail buying during the afternoon," said No Dong-kil, an analyst at Shinhan Securities Co. "Individual investors also showed interest in defense and shipbuilding stocks, anticipating strong earnings in 2025."

Technology, defense, brokerage, and shipbuilding stocks were the primary drivers of the day's gains. Samsung Electronics saw a 0.58 percent increase to 138,900 won, while SK hynix surged 4.31 percent to 726,000 won. In the shipbuilding sector, HD Hyundai Heavy Industries soared 7.21 percent to 550,000 won, and Korea Aerospace Industries climbed 9.41 percent to 136,100 won.

Defense firm Hanwha Aerospace rose 0.99 percent to 1,022,000 won, and Samsung Securities gained 3.66 percent to 79,200 won. However, not all were gainers; Kia fell 0.08 percent to 122,500 won, and Korean Air dropped 0.44 percent to 22,500 won. Hyundai Steel and LG Chem also saw declines, losing 1.33 percent to 29,650 won and 0.45 percent to 328,500 won, respectively.

The local currency was quoted at 1,445.50 won against the U.S. dollar at 3:30 p.m., down 1.7 won from the previous session.