Seoul: South Korean stocks soared past the 5,800-point threshold for the first time, closing at a record high on Friday, driven by expectations of forthcoming investor-friendly measures poised to enhance market valuations. Concurrently, the local currency weakened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) climbed by 131.28 points, or 2.31 percent, concluding at an unprecedented 5,803.53. Trade activity was robust, with 1.73 billion shares exchanged at a value of 32.74 trillion won (US$22.64 billion), as gainers surpassed losers 543 to 340.
Institutional investors purchased a net 1.61 trillion won in shares, whereas foreign and retail investors engaged in profit-taking, offloading a net 745.06 billion won and 986.12 billion won in shares, respectively. Following the three-day Lunar New Year holiday, the index's Thursday surge past the 5,600 level was attributed to pent-up demand that had accumulated during the break, continuing to fuel the stock market.
The KOSPI has recently been on a bullish trajectory, crossing the 5,000 mark for the first time on January 27 and subsequently surpassing 5,500 on February 12. Analyst Kim Seok-hwan from Mirae Asset Securities noted the geopolitical tensions following U.S. President Donald Trump's indication of potential military action against Iran, warning that a full-scale conflict risk is not negligible. Despite these tensions, investor optimism persists regarding government and corporate measures to enhance shareholder returns and market valuations.
U.S. stocks declined Thursday amid concerns over the U.S.-Iran situation and risks associated with large-scale AI investments, particularly after Blue Owl Capital's announcement of tightening investor liquidity. In contrast, most large-cap shares in Seoul ended higher, with the technology and defense sectors leading the rise.
Samsung Electronics inched up 0.05 percent to 190,100 won, while SK hynix jumped 6.15 percent to 949,000 won. Automotive stocks showed mixed results; Hyundai Motor dropped 0.78 percent to 509,000 won, while Kia increased by 1.06 percent to 171,800 won.
In other sectors, LG Energy Solution dipped 0.5 percent to 401,500 won, but SK Square climbed 2.47 percent to 580,000 won. Doosan Enerbility surged 5.18 percent to 103,500 won, and Hanwha Aerospace advanced 8.09 percent to 1,242,000 won.
HD Hyundai Heavy rose 4.88 percent to 602,000 won with Hanwha Ocean seeing a 6.61 percent rise to 149,900 won. Samsung Biologics increased 0.93 percent to 1,736,000 won, whereas Celltrion declined 1.02 percent to 242,000 won.
Financial stocks also gained ground. KB Financial rose 1.38 percent to 168,800 won, and Shinhan Financial increased 1.69 percent to 102,000 won. Samsung Life Insurance saw a 4.78 percent increase to 219,000 won, with Mirae Asset Securities up 0.57 percent to 70,900 won.
The Korean won was quoted at 1,446.65 against the U.S. dollar by 3:30 p.m., a decrease of 1.15 won from the prior session. Bond prices, which generally move inversely to yields, closed higher, as the yield on three-year Treasurys fell by 3.5 basis points to 3.143 percent, and the return on five-year government bonds also decreased by 3.5 basis points to 3.391 percent.