Seoul shares close at new high on tech rally amid AI optimism
South Korea’s KOSPI index hit a record high of 8,788.38 on Monday, driven by AI-related tech stocks amid optimism over Nvidia’s upcoming visit and semiconductor demand. Stocks like Samsung Electronics surged 10.09%, while the Korean won strengthened against the U.S. dollar, despite mixed foreign investor activity and rising bond yields.
South Korea’s stock market closed at a new all-time high on Monday, with the KOSPI index rising 3.68% to 8,788.38 after peaking intraday at 8,874.16. The rally was fueled by AI-driven tech stocks, including Samsung Electronics, which jumped 10.09% to a record 349,000 won, and LG Electronics, which surged 29.86%. Heavy trading volume reached 618.17 million shares worth $46.1 billion, though losers outnumbered winners. Investors anticipated gains from potential partnerships ahead of Nvidia CEO Jensen Huang’s visit later this week, following his Computex announcement that Samsung, SK hynix, and Micron would supply HBM chips for Nvidia’s AI-focused Vera CPU. Analyst Lee Kyung-min from Daishin Securities noted that large-cap AI and robotics stocks were leading gains, with SK Square and Hyundai Motor also rising. The Korean won appreciated to 1,504.3 against the U.S. dollar, while bond yields climbed, with three-year Treasurys up 5.9 basis points and five-year bonds rising 7.2 basis points. Foreign investors sold a net 2.91 trillion won in stocks, contrasting with domestic buying. South Korea’s exports hit a record $87.8 billion in May, up 53% year-over-year, driven by semiconductor demand. Despite stalled U.S.-Iran talks over the Strait of Hormuz, chipmakers rallied on AI semiconductor growth expectations. Naver and other tech firms also gained amid reports of potential AI collaborations with Nvidia’s leadership.
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