Seoul: South Korean stocks concluded more than 1 percent higher on Wednesday, driven by optimism surrounding a potential resolution to the U.S.-Iran conflict. However, the Korean won experienced a decline against the U.S. dollar. According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) rose by 88.29 points, or 1.59 percent, reaching 5,642.21 after achieving an intraday peak of 5,740.97. The day's trade volume registered at 756.4 million shares, valued at 24.4 trillion won (US$16.3 billion), with 716 stocks advancing compared to 165 declining. Institutional investors emerged as net buyers, acquiring a net 2.3 trillion won. In contrast, retail and foreign investors offloaded a combined net 2.6 trillion won in equities. This trend followed U.S. President Donald Trump's statement on Tuesday about productive discussions with Iran aimed at terminating the monthlong war, coupled with Iran's "significant prize" offer related to gas and oil. Notably, Iran has refuted claims of contact with the United States, as reported by foreign media outlets. "Despite the stock market's rise, uncertainties concerning the Middle East situation persisted," noted Lee Kyoung-min, an analyst from Daishin Securities. In Seoul, the majority of large-cap shares saw an upward trend, although market leader Samsung Electronics dipped by 0.37 percent to 189,000 won, while its competitor, SK hynix, climbed 0.91 percent to 995,000 won. Defense stocks showed strength, with Hanwha Aerospace increasing by 4.87 percent to 1,400,000 won and Hyundai Rotem up 7.2 percent to 190,700 won. LIG Nex1 surged by 14.51 percent to 734,000 won following news of its collaboration with U.S. data company Palantir to develop defense systems jointly. Mirae Asset Securities, a local brokerage, saw a substantial rise of 10.15 percent to 67,300 won, fueled by reports that SpaceX intends to file for a stock listing imminently. Mirae Asset Securities is one of the investors in the space company founded by Elon Musk of Tesla fame. The Korean won was quoted at 1,499.7 won against the U.S. dollar at 3:30 p.m., marking a decrease of 4.5 won from the previous session.