Seoul: South Korean stocks reached a record high as they continued their upward trajectory for a fourth consecutive session, driven by strong investment in artificial intelligence (AI) shares despite ongoing concerns about a potential market bubble. However, the local currency experienced a decline against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) saw a modest increase of 3.11 points, or 0.06 percent, closing at 5,224.3. The index had risen earlier in the day to a high of 5,321.68. Trading activity was substantial, with 852 million shares changing hands, valued at 34.7 trillion won (approximately US$24.1 billion). Among the listed stocks, 602 were losers, while 278 were winners.
Individual investors purchased a net 2.2 trillion won in shares, while foreign investors sold a net 1.9 trillion won. Institutional investors also offloaded a net 425 billion won. Despite concerns about a market bubble, investors showed continued interest in tech shares, buoyed by their strong earnings performance amid the AI boom.
Han Ji-young, a researcher at Kiwoom Securities, noted that AI hardware and software companies need to address profitability concerns in the short term. However, she added that the market's preference for chipmakers supplying memory products to these companies is likely to remain strong.
The market's gains were somewhat tempered by U.S. President Donald Trump's announcement of plans to increase "reciprocal" tariffs and auto duties on South Korea back to 25 percent this week.
Samsung Electronics, a major player in the market, saw a slight decline of 0.12 percent to 160,500 won, while SK hynix achieved a new high, rising 5.57 percent to 909,000 won. Brokerage firms benefited from the market rally, with Mirae Asset Securities climbing 4.65 percent to 42,750 won and Kiwoom Securities gaining 4.11 percent to 443,500 won.
SK Telecom, the leading mobile carrier, increased by 4.32 percent to 72,500 won, supported by an improved business outlook. Its competitor, KT, also rose by 1.43 percent to 56,900 won. Samsung SDI experienced a 0.52 percent increase after announcing a new battery supply contract, which is believed to be related to Tesla Inc.'s energy storage systems.
The Korean won was valued at 1,439.5 won against the U.S. dollar at 3:30 p.m., a decrease of 13.2 won from the previous session's close. Bond prices saw a decline, with the yield on three-year Treasurys rising by 3.2 basis points to 3.138 percent, and the yield on five-year government bonds increasing by 4.1 basis points to 3.436 percent.