Seoul: South Korean stocks opened sharply higher Wednesday as Iran announced it would guarantee safe passage through the Strait of Hormuz during a two-week ceasefire period.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) surged by 331.13 points, or 6.03 percent, reaching 5,825.91 as of 9:20 a.m., an opening increase of 5.64 percent. This remarkable rise led the Korea Exchange (KRX) to activate a buy-side sidecar, temporarily halting program-driven buy orders in KOSPI futures.

U.S. President Donald Trump, via a social media post, stated that the United States would suspend attacks on Iran for two weeks if Tehran agrees to the "complete, immediate and safe opening" of the vital Strait of Hormuz. Trump further mentioned that a 10-point proposal from Iran had been received, which he described as a "workable basis on which to negotiate."

In response, Iran's foreign ministry issued a statement expressing acceptance of the two-week ceasefire proposal. Previously, Trump had urged Iran to open the strategic waterway by 8:00 p.m. Tuesday (U.S. time), warning of potential strikes on Iran's power plants and bridges if the demand was not met.

The positive developments had a notable impact on the South Korean market. Leading market cap companies such as Samsung Electronics saw a significant rise of 7.12 percent, while SK hynix experienced an impressive jump of 9.72 percent. Financial firms also experienced gains, with KB Financial advancing 7.77 percent and Samsung Life Insurance increasing by 6.98 percent.

Additionally, automotive giants Hyundai Motor and Kia saw their shares increase by 4.65 percent and 4.64 percent, respectively. The performance among battery makers was mixed, with LG Energy Solution slightly declining by 0.24 percent, whereas Samsung SDI added 1.97 percent to its value.

The local currency also showed strength, trading at 1,477.2 won against the U.S. dollar at 9:20 a.m., marking a sharp rise of 27 won from the previous session.