Seoul: South Korean stocks reached a historic milestone as they closed above the 5,000-point mark for the first time, driven by gains in technology shares, even amidst threats from former U.S. President Donald Trump to increase tariffs on Korean imports. The Korean won, however, weakened against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) surged 135.26 points, or 2.73 percent, ending the session at 5,084.85. The index has been on an upward trajectory, surpassing the significant 5,000-point level since the previous Thursday, marking a new era for the South Korean stock market.
The day witnessed heavy trading, with a volume of 472 million shares valued at 28 trillion won (approximately US$19.4 billion). Despite the overall positive performance, more stocks fell than rose, with 472 losers compared to 410 winners. Foreign investors were net buyers, purchasing 850 billion won worth of stocks, while retail investors sold a net 1 trillion won. Institutional investors, on the other hand, acquired a net 232 billion won.
The market opened cautiously after Trump's announcement of raising "reciprocal" tariffs and auto tariffs on South Korean goods from 15 percent to 25 percent. The decision was attributed to delays in South Korea's legislative process for implementing a bilateral trade agreement with the U.S. However, market participants largely dismissed these tariff concerns as a temporary issue unlikely to cause long-term disruption.
South Korea's presidential office emphasized its commitment to fulfilling the trade agreement with the U.S. and pledged to handle the situation calmly. Han Ji-young, a researcher at Kiwoom Securities, stated that the delay in parliamentary approval of the trade deal was expected, and the tariff hike was seen as a minor market disturbance.
Technology stocks, particularly semiconductors, drove the market's positive performance. Samsung Electronics rose by 4.87 percent to a record 159,500 won, while SK hynix increased by 8.7 percent to 800,000 won, marking all-time highs for both companies. Utility stocks also performed well after the government's announcement of plans to build two new nuclear reactors by 2038, with KEPCO and Korea Gas seeing modest gains.
In the telecommunications sector, SK Telecom experienced a significant boost, jumping 12.3 percent to 69,400 won, following optimistic earnings forecasts for 2026. KT also saw an increase, climbing 2.94 percent to 56,000 won.
However, the automotive sector faced challenges, with Hyundai Motor and Kia experiencing declines of 0.81 percent and 1.1 percent, respectively.
The Korean won was quoted at 1,446.2 against the U.S. dollar by mid-afternoon, marking a decrease of 5.6 won compared to the previous trading session.