South Korean stocks have surged to a record high, driven by investor enthusiasm for artificial intelligence and optimism surrounding domestic market reforms. The benchmark KOSPI index rose 1.54% to 3,395.54, marking its best weekly performance in over four years with a 5.94% gain.
Chipmakers like Samsung Electronics and SK Hynix led the gains, driven by anticipated demand from the global AI boom. SK Hynix recently completed its internal certification process for next-generation high-bandwidth memory (HBM4) chips, further fueling investor interest.
The market's upward trend is also attributed to South Korean President Lee Jae Myung's decision to scrap a plan to revise a capital gains tax on stock investments. This move reaffirms a promise of reform aimed at revitalizing the market and boosting investor confidence.
Foreign investors have also played a significant role in the market's growth, with foreigners buying shares worth 352.7 billion won ($253.84 million). The KOSPI index has risen 41.51% so far this year, with the Korean won strengthening 6.1% against the dollar in 2025.
Among index heavyweights, Samsung Electronics rose 2.72%, while SK Hynix gained 7.00%. The market's momentum is expected to continue, driven by the growing demand for AI technologies and ongoing market reforms.
