Seoul: South Korean stocks experienced a significant surge, climbing over 2 percent to close at a record high, driven by substantial gains in large-cap semiconductor shares. The local currency saw a decline against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) rose 95.46 points, or 2.27 percent, closing at 4,309.63 and surpassing the 4,300 mark for the first time. This new record breaks the previous high set on November 3, when optimism over AI-driven growth was prevalent.
Trade volume remained moderate with 400.33 million shares valued at 17.27 trillion won (US$11.97 billion), though losers outpaced winners 522 to 371. The index began the session on a positive trajectory as offshore investors turned net buyers.
Foreign investors purchased a net 644.68 billion won in shares, while individual and institutional investors offloaded net amounts of 454.43 billion won and 233.37 billion won, respectively. Analysts attributed the strong performance to robust exports counterbalancing recent U.S. equity market weaknesses and continued AI momentum.
In 2025, South Korean exports reached a historic high of $709.7 billion, surpassing the $700 billion mark for the first time, fueled by growth in AI and the semiconductor industry, according to government data.
Kim Yong-gu, an analyst at Yuanta Securities, noted that the KOSPI is expected to maintain a neutral-to-positive trend, supported by global growth cycles, sales, earnings, and government initiatives to boost the economy and stock market.
On the U.S. front, shares ended lower on the final trading day of 2025, with the Dow Jones Industrial Average and Nasdaq composite both experiencing declines.
Leading tech stocks propelled the KOSPI's rise, with Samsung Electronics soaring 7.17 percent to 128,500 won and SK hynix climbing 3.99 percent to 677,000 won, both reaching record highs. However, LG Energy Solution and LG Chem saw declines, while Samsung Biologics also dropped slightly.
In contrast, Celltrion surged 11.88 percent amid expectations of record quarterly earnings and its acquisition of a U.S. manufacturing plant from Eli Lilly. Carmakers had mixed results, with Hyundai Motor seeing a slight increase while Kia fell.
Shipbuilders and defense stocks showed varied performances, with Hanwha Ocean gaining and Hanwha Aerospace rising slightly, while Doosan Enerbility saw a minor decline. Financial and internet sectors exhibited mixed results, with KB Financial dipping and Naver climbing.
The South Korean won was quoted at 1,441.8 against the U.S. dollar, a decrease from the previous session. Bond prices ended higher, with yields on three-year and five-year government bonds falling.