Seoul: Seoul shares rallied by more than 4 percent Monday amid renewed confidence over the artificial intelligence (AI) industry. The local currency gained against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) jumped 208.9 points, or 4.1 percent, to close at 5,298.04. Trade volume was heavy at 612.4 million shares worth 26.2 trillion won (US$17.9 billion), with winners far outpacing losers 714 to 173.
Foreigners bought a net 441.8 billion won while retail investors offloaded a net 3.29 trillion won. Institutions purchased a net 2.7 trillion won. Investor confidence rebounded as the recent correction in technology stocks on Wall Street, sparked by concerns over their long-term profitability and the financial burden of AI investment, was deemed to have been excessive.
Analysts noted Seoul shares are anticipated to continue experiencing volatility ahead of the Lunar New Year holiday, which falls from Feb. 16 to 18. "As the stock market needs to digest short-term burdens, such as the long holiday, investors are advised to make decisions on the direction of the index and major stocks after next week's holiday," Han Ji-young, a researcher at Kiwoom Securities, said.
Top cap Samsung Electronics shot up 4.92 percent to 166,400 won on reports the company will begin mass production of the world's first sixth-generation high-bandwidth memory (HBM), known as HBM4, this month. Chip giant SK hynix also moved up 5.72 percent to 887,000 won.
Top battery maker LG Energy Solution gained 2.47 percent to 394,500 won, and Samsung SDI moved up 2.7 percent to 380,000 won. Leading cosmetics maker Amorepacific jumped 20.25 percent to 165,100 won after reporting robust earnings for 2025 last week, supported by strong overseas sales.
Samsung C and T, a major trading firm, moved up 7.94 percent to 312,500 won. Shinsegae, the operator of South Korea's second-largest department store chain, jumped 7.74 percent to 355,000 won. The local currency was quoted at 1,460.3 won against the U.S. dollar at 3:30 p.m., up 9.2 won from the previous session.