Seoul: South Korean stocks surged more than 1 percent, reaching their highest levels in nearly four years. This rise was primarily driven by gains in major tech and steel shares, as well as positive investor sentiment following the revision of the shareholder-friendly Commercial Act and developments in tariff discussions with the United States. However, the local currency depreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) climbed 41.21 points, or 1.34 percent, closing at 3,116.27. This marks the highest point since September 27, 2021, when the index concluded at 3,133.64. The trade volume was moderate with 527.53 million shares exchanged, valued at 14.68 trillion won (US$10.79 billion), and the number of winners surpassing losers at 607 to 282.
Foreign and institutional investors net purchased 632.39 billion won and 561.11 billion won, respectively, while individual investors sold a net 1.23 trillion won worth of stocks. The index opened on a positive note, reflecting overnight gains on Wall Street, and sustained this upward momentum.
Investors reacted positively to the news that the U.S. will impose a lower-than-promised 20 percent tariff on many Vietnamese exports. Vietnam is a significant manufacturing hub for South Korean giants such as Samsung Electronics and LG Electronics. Additionally, developments in Seoul's trade negotiations with the United States were closely monitored, with a week remaining until the July 8 deadline. Trade Minister Yeo Han-koo is scheduled to visit the U.S. later this week for last-minute talks.
The National Assembly's approval of the revision of the Commercial Act also boosted investor sentiment. The revision aims to expand corporate directors' fiduciary duties to shareholders, thereby better protecting the rights of minority shareholders. Tech and steel shares were at the forefront of the index's upturn.
Samsung Electronics, a market leader, increased by 2.22 percent to 62,150 won, while chip giant SK hynix saw a decline of 0.72 percent to 277,000 won. Major battery manufacturer LG Energy Solution rose by 2.23 percent to 309,250 won, and leading steelmaker POSCO Holdings surged by 9.72 percent to 316,000 won. Hyundai Steel experienced a significant increase, soaring 16.18 percent to 35,550 won.
Samsung Biologics, a leading biotech firm, advanced 0.59 percent to 1,015,000 won, and top financial firm KB Financial increased 0.97 percent to 114,600 won. Nuclear power plant manufacturer Doosan Enerbility rose by 2.27 percent to 63,000 won, and defense giant Hanwha Aerospace saw a modest increase of 0.24 percent to 821,000 won.
Conversely, carmakers experienced a downturn. Leading carmaker Hyundai Motor decreased by 0.47 percent to 212,500 won, and its affiliate Kia Motors fell by 0.6 percent to 99,400 won.
Top online portal operator Naver rose 0.99 percent to 254,500 won, while Kakao, the dominant mobile messenger operator in the country, increased by 2.39 percent to 60,100 won.
The local currency was quoted at 1,359.4 won against the U.S. dollar at 3:30 p.m., a decrease of 0.7 won from the previous session. Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell by 3.4 basis points to 2.499 percent, while the return on benchmark five-year government bonds decreased by 2.4 basis points to 2.595 percent.