Latest Trends in South Korea’s Economy: KOSPI Rally Continues, Forex Reserves Drop Sharply, President Lee Jae-myung’s Shanghai Briefing

Forecast for a New KOSPI Rally

The KOSPI index has been climbing for three straight trading days, hinting at a fresh rally. Yuanta Securities has raised its year-end target for the KOSPI from 4,600 to an impressive 5,200. Similarly, Kiwoom Securities has adjusted its forecast from 4,500 to 5,200. Meanwhile, the KOSDAQ dipped slightly, but overall market sentiment remains positive.

• Closing of KOSPI: Uptrend continues
• USD/KRW Exchange Rate: Closed at 1,445 won (up 1.7 won)

Foreign Exchange Reserves Drop to 28-Year Low

The Bank of Korea announced that South Korea’s foreign exchange reserves fell sharply to $428 billion in December, marking the biggest monthly decline in nearly three decades. This drop is largely attributed to currency intervention efforts.

This is the largest decrease in 28 years, sending shockwaves through the markets. Investors are watching closely for measures to stabilize the economy.

President Lee Jae-myung’s Urgent Shanghai Briefing

While on a state visit to China, President Lee Jae-myung held an emergency press briefing in Shanghai on the 7th. He warned that rising anti-China and anti-Korea sentiments are causing serious economic damage to the nation.

The briefing was broadcast live on KBS News Special, discussing North Korea diplomacy and strengthening economic cooperation. His comments from Shanghai are drawing attention both domestically and internationally.

Other Key Economic Indicators and Contract Wins

Hyundai Heavy Industries secured additional contracts to supply military support ships for the U.S. Navy, highlighting South Korea’s reputation as a top defense partner.

At CES 2026, competition among robot vacuum brands is heating up, with Samsung and other local companies gaining recognition. Hyundai Motor also drew major attention with its AI-powered robot technology.

• Major economic data released on January 7
• International updates on Iran, Russia, and Cuba
• Seoul’s New Year Business Gathering featuring Mayor Oh Se-hoon’s speech

Global Impact and Market Reactions

The U.S. has authorized unlimited imports of Venezuelan crude oil, leading to a decline in gold and silver prices. This move could indirectly influence South Korea’s export markets.

On the domestic stock market, individual stocks like IHQ experienced significant swings, including a 90% drop during liquidation. Overall, optimism remains strong for the KOSPI index.