Seoul: South Korean stocks surged more than 5 percent to close at a fresh high on Monday, nearing the 7,000-point mark, as investors actively bought semiconductor shares while anticipating developments in U.S.-Iran peace talks. The Korean won also rose sharply against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) increased by 338.12 points, or 5.12 percent, reaching a record high of 6,936.99.

According to Yonhap News Agency, the index initially opened 2.79 percent higher following U.S. President Donald Trump's announcement of a plan to guide non-conflict ships through the Strait of Hormuz as a "humanitarian gesture" starting this week. However, tensions remained as a senior Iranian official warned that Tehran would view any U.S. interference in the strait as a breach of the ceasefire.

Despite these geopolitical tensions, the KOSPI continued to gain momentum in the afternoon, bolstered by foreign and institutional buying. This surge comes after the main index surpassed the 5,000-point mark in late January and crossed the 6,000-point milestone in February. After recovering from losses in March due to the outbreak of the U.S.-Iran conflict in late February, the KOSPI is now on the brink of reaching the unprecedented 7,000-point level, driven by optimism surrounding the AI boom and expectations for the reopening of the vital waterway.