Korean Stock Market Hits New Highs…Samsung Electronics Surges 7%, KOSPI Reaches Record Levels

KOSPI Breaks All-Time High

The Korean stock market hit a new record as the KOSPI index surged by 2.3%, driven by a more than 7% jump in Samsung Electronics' stock price. This rally is largely fueled by increased demand for AI infrastructure investments, boosting semiconductor-related stocks [1].

Alongside TSMC’s gains in Taiwan, overall Asian markets performed well, with Hong Kong’s Hang Seng Index climbing nearly 2.8% [1].

Oil Prices Drop for Four Consecutive Weeks

Gasoline prices at nationwide gas stations averaged about $1.30 per gallon (or 1729.9 KRW per liter), marking a decline for the fourth straight week. The drop is mainly due to falling international crude oil prices and expectations of oversupply [5].

• Seoul: $1.33 per gallon (down 6.5 cents)
• Daegu: $1.27 per gallon (down 7.8 cents, lowest in the country)
• SK Energy: $1.29 per gallon (highest price)
• Budget-friendly gas stations: $1.25 per gallon (lowest price)

Meanwhile, diesel prices also continued their downward trend, dropping by about 8.6 cents to $1.28 per gallon (or 1633.1 KRW per liter) [5].

Semiconductor Supercycle Outlook

Strong demand driven by AI applications means both DRAM and NAND flash memory are currently outpacing supply. According to a report from CT Group, supply shortages are expected to persist beyond 2026 [1].

Locally, the National Pension Service has reportedly earned around 260 trillion KRW (roughly $200 billion) from its investments in domestic stocks [2].

Market Drivers and Trends

Last year, the KOSPI surpassed 4,200 points, driven by three main themes: government policies, liquidity, and the AI semiconductor supercycle. These factors are likely to continue fueling growth this year as well [2].

Inflation remains moderate, with the annual inflation rate holding steady around 2.1%, close to the Bank of Korea’s target of 2% [2].

Global Connections and Outlook

Despite concerns over tariffs and trade tensions stemming from policies under former President Trump, South Korea’s stock market has shown resilience, especially with semiconductor stocks leading the charge. The KOSPI’s year-to-date gain of 76% ranks it among the top performers worldwide [3].

Meanwhile, the Dow Jones Industrial Average in the U.S. broke through the 50,000 mark before President Biden’s inauguration, signaling positive momentum [3].