Korean Stock Market Hits Record Highs, KOSPI Reaches 4,400, Led by Semiconductors

KOSPI Closes Above 4,400 for the First Time in 4 Years

South Korea’s stock market kicked off the new year with strong gains, pushing the KOSPI index above 4,400 for the first time ever. Foreign investors bought over 2 trillion won ($1.8 billion), fueling the rally, while institutional and retail investors took some profits.

The KOSDAQ index also hit a four-year high at 957.50, with biotech stocks leading the charge.

Major Semiconductor Stocks Reach Record Market Cap Share

Samsung Electronics and SK Hynix led the surge in the KOSPI. Samsung closed up 7.47% at 138,100 won ($105), approaching the 140,000 won mark. SK Hynix rose 2.81% to 696,000 won ($530), nearing 700,000 won.

The combined market cap share of these two giants hit a record 38.2%, highlighting their dominant role in the market.

• Samsung Electronics: +7.47%, 138,100 won
• SK Hynix: +2.81%, 696,000 won

Space and Defense Stocks Soar Amid Geopolitical Tensions

Rising tensions from North Korea’s missile tests and instability in Venezuela boosted space and defense stocks. Hanwha Aerospace jumped 6.98% to 1,012,000 won ($770).

Analysts say the market’s concern over the U.S. government’s stance on Venezuela’s leadership, including the recent decision not to intervene, added to the uncertainty.

Biotech Stocks Lead KOSDAQ Rally

On the KOSDAQ, biotech stocks like ABL Bio surged over 8%. D&D PharmaTech and Peptron gained 5.51% and 4.45%, respectively. Other biotech firms like Alteogen and Ligachem Bio also rose 1-3%, contributing to the sector’s overall rebound and pushing the index to new heights.

Market Sentiment Turns Optimistic

With expectations of a continued semiconductor supercycle, Korean listed companies are projected to see operating profits rise from around 300 trillion won ($228 billion) this year to 400 trillion won ($304 billion) next year.

Strong export figures and overcoming political uncertainties are fueling hopes for a recovery in the Korean economy, with some analysts even suggesting the KOSPI could break through 5,000 points in the near future.