South Korea's KOSPI index briefly surpassed the 5,000-point mark for the first time on January 22, and continued rising on January 23 morning before trimming gains due to profit-taking. As of 11:20 a.m., the index stood at 4,978.65, up 0.53%, amid mixed performances in tech and auto shares. Optimism over U.S. market gains and AI demand supported the rally.
South Korean shares closed higher on January 22, buoyed by major tech giants, after briefly topping the 5,000-point mark for the first time. The benchmark KOSPI rose 42.6 points, or 0.87 percent, to 4,952.53. Trading volume was moderate at 544.3 million shares worth 32.5 trillion won (US$22.1 billion), with gainers outnumbering losers 563 to 315. Individual investors net bought 156.4 billion won of shares, while foreigners and institutions net sold 298.2 billion won and 102.6 billion won, respectively.
Samsung Electronics advanced 1.87 percent to 152,300 won, SK hynix gained 2.03 percent to 755,000 won, and LG Energy Solution jumped 5.7 percent to 417,000 won. In contrast, auto shares declined: Hyundai Motor fell 3.64 percent to 529,000 won, and affiliate Kia dropped 4.36 percent to 164,600 won. The local currency strengthened to 1,469.95 won against the U.S. dollar, up 1.35 won.
The rally tracked overnight Wall Street gains, with the Dow up 1.21 percent, S&P 500 adding 1.16 percent, and Nasdaq rising 1.18 percent, driven by eased geopolitical concerns over Greenland and stable inflation data. "The long-awaited move above the 5,000 level that investors have targeted since last year has become a reality," said Lee Kyung-min, an analyst at Daishin Securities, highlighting solid growth in the semiconductor sector.
On January 23, the KOSPI opened sharply higher, up 0.88 percent to 4,995.88 in the first 15 minutes, nearing 5,000 again, but trimmed gains to 4,978.65, or 0.53 percent higher, as of 11:20 a.m., due to profit-taking in large-cap tech and auto shares. Samsung Electronics rose 1.38 percent, while SK hynix fell 0.4 percent. Hyundai Motor lost 3.02 percent, and Kia declined 2.07 percent. The won traded at 1,468.55 per dollar, up 1.35 won.
The KOSPI's surge is fueled by AI and chip booms, supported by the government's 'KOSPI 5000' initiative and corporate reforms. However, analysts caution about volatility from sector concentration. SK Securities raised its KOSPI target to 5,250.
