Seoul: Seoul shares surged by more than 1 percent, closing above the 4,000 point mark, as investor sentiment received a boost following the Bank of Korea's announcement that the economy expanded at its fastest pace in nearly four years during the third quarter, driven by strong exports. The Korean won also appreciated against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) climbed 41.37 points, or 1.04 percent, to finish at 4,036.3. This marked the first time the index closed above 4,000 since November 20. Despite the positive performance, trade volume remained low at 286 million shares, valued at 13 trillion won (US$8.85 billion), with 653 gainers compared to 227 losers.

Foreign investors purchased a net 158.9 billion won worth of local shares, while individual investors sold off a net 898.7 trillion won. Institutional investors, on the other hand, acquired a net 756.9 billion won. The central bank reported that real gross domestic product (GDP) increased by 1.3 percent in the July-September period compared to the previous quarter, surpassing the earlier estimate by 0.1 percentage point.

Lee Kyoung-min, an analyst at Daishin Securities, commented on the situation, noting that despite challenges such as tariff issues and global uncertainties, the South Korean economy exhibited signs of recovery, leading to a heightened demand for risky assets.

In the tech sector, Samsung Electronics saw a gain of 1.06 percent to 104,500 won, and LG Energy Solution rose 0.72 percent to 418,000 won. However, SK hynix, the second-largest chipmaker, experienced a decline, shedding 1.08 percent to 552,000 won. Meanwhile, Samsung C and T soared 9.35 percent to 245,500 won following a regulatory filing indicating that Hong Ra-hee plans to transfer her 1.06 percent stake in the trading firm to her son, Samsung Electronics Chairman Lee Jae-yong.

Hanwha Aerospace's shares increased by 5.1 percent to 866,000 won amid reports that Spain is considering the defense company for its self-propelled howitzer program. The local currency was quoted at 1,468 won against the U.S. dollar at 3:30 p.m., an increase of 0.4 won from the previous session.

In the bond market, prices ended lower as yields moved inversely. The yield on three-year Treasurys rose by 1.9 basis points to 3.041 percent, while the return on benchmark five-year government bonds increased by 3.5 basis points to 3.246 percent.