Seoul Stocks Set New Records as AI-Led Rally Powers KOSPI Above 6,700

Lead

South Korean stocks set a series of record highs this week, with the benchmark KOSPI index vaulting above the 6,700-point level for the first time, as investors piled into semiconductor and AI-related shares on expectations of sustained demand driven by the artificial intelligence boom.

Coverage Comparison

Yonhap News Agency, South Korea's leading wire service, reported market updates across multiple sessions. On Monday, April 27, the KOSPI closed up 139.4 points, or 2.15 percent, at a record 6,615.03, according to Yonhap. That record came just two trading days after the previous high of 6,475.81 set on Thursday.

By Wednesday, April 29, the index had climbed another 49.88 points, or 0.75 percent, to close at a fresh peak of 6,690.90, after touching an intraday high of 6,716.20, as per Yonhap's reports. The index extended its gains to a third consecutive day.

On Thursday morning, April 30, Seoul stocks opened above the 6,700 mark, with the KOSPI adding as much as 48.49 points to reach 6,739.39 at the bell, according to Yonhap. By mid-morning, the index had eased to 6,713.81, up 0.34 percent, while another report noted it was trading at 6,710.41 early in the session.

Key Claims

• The KOSPI set record closing highs on Monday and Wednesday, with the index breaking through the 6,700 level on Thursday morning for the first time.
• Samsung Electronics, the world's largest memory chipmaker, posted record quarterly earnings in the first three months of the year, according to multiple Yonhap reports. Its shares rose across the sessions, with Wednesday's close up 1.8 percent and Thursday's early trading adding 0.77 percent.
• SK hynix, Samsung's chipmaking rival, showed mixed performance: it dropped 0.54 percent on Wednesday but advanced 1.62 percent on Thursday morning, per Yonhap.
• AI investment firm SK Square jumped 2.41 percent on Thursday, following a 5.42 percent surge earlier in the week.
• Foreign investors net sold 606.9 billion won (US$458 million) of local equities on Wednesday, while retail and institutional investors bought a combined 645.1 billion won (US$488 million).
• On Monday, foreigners and institutions were net buyers, purchasing 1.99 trillion won (US$1.5 billion) combined, while retail investors offloaded 1.97 trillion won (US$1.49 billion).
• The Korean won rose against the U.S. dollar on Monday, with the exchange rate at 1,486.6 won per dollar on Thursday morning.
• International oil prices spiked on Thursday, with Brent crude surging 6.1 percent to US$118.03 per barrel and WTI up 6.95 percent to $106.88, amid U.S. President Donald Trump's announcement that he would not lift a naval blockade of Iran until a nuclear deal is secured.

Market Drivers

Analysts attribute the rally to strong corporate earnings in the AI supply chain. Lee Kyoung-min, an analyst at Daishin Securities, was quoted by Yonhap as saying, "The record high closing comes amid growing anticipation over corporate earnings, amid strong earnings from major tech companies in the AI supply chain, including Samsung Electronics and SK hynix." He added, "We are seeing anticipation over companies related to AI data centers, particularly those in the AI value chain, such as semiconductor and power equipment companies."

The market's upward momentum was further fueled by overnight earnings from U.S. tech giants. After U.S. markets closed Wednesday, Alphabet, Amazon.com, Meta Platforms, and Microsoft all reported stronger-than-expected revenue for the first quarter, according to Yonhap. That revived hopes for a continued AI boom.

However, Wednesday's session initially opened lower, tracking losses on Wall Street sparked by a report that an executive from OpenAI had raised concerns about revenue and user targets. The KOSPI turned higher in the afternoon after the Financial Times reported that investors were betting on a prolonged boom for memory chipmakers amid sustained AI demand.

Broader Market Context

The record run comes after a volatile period for South Korean equities. Yonhap noted that after surpassing the 5,000-point mark in late January and topping 6,000 points in February, the KOSPI erased most of its gains in March following the outbreak of the U.S.-Iran war. But easing Middle East tensions and continued AI optimism have pushed major tech shares higher.

On Monday, the rally was broad-based, with winners outnumbering losers 495 to 357 on heavy volume of 835.6 million shares worth 33 trillion won (US$22.4 billion). Power equipment companies also surged alongside chipmakers. On Thursday, Doosan Robotics spiked 8.02 percent on news of potential technology cooperation with AI chip giant Nvidia, while defense firm Hanwha Aerospace rose 2.04 percent on strong arms export earnings, as per Yonhap.

Not all sectors shared in the gains. On Thursday, Hyundai Motor fell 2.52 percent and Kia dipped 1.78 percent, while battery maker LG Energy Solution lost 1.59 percent after swinging to a net loss in the first quarter due to an electric vehicle market slowdown.

Looking Ahead

Market attention now turns to upcoming earnings from the so-called Magnificent Seven tech companies. According to Yonhap, five of those seven — including Apple, Alphabet, and Microsoft — are expected to release first-quarter results this week. Their performance will likely determine whether the AI-driven rally can sustain its momentum.

Analysts also highlighted that geopolitical uncertainties in the Middle East, which had weighed on the market, appear to be easing, though oil price spikes remain a risk factor.

(Reporting by Yonhap News Agency)