South Korean stocks surged more than 2 percent Friday to close at an all-time high, led by strong gains in large-cap semiconductor shares. The local currency weakened against the US dollar.
The benchmark Korea Composite Stock Price Index rose 95.46 points, or 2.27 percent, to close at 4,309.63, climbing past the 4,300 level for the first time ever.
The previous record was set on Nov. 3, when the index closed at 4,221.87 amid strong optimism over artificial intelligence-driven growth.
Trade volume was moderate at 400.33 million shares worth 17.27 trillion won ($11.97 billion), with losers beating winners 522 to 371.
The index started the session on a higher note and extended its gains further, as offshore investors shifted to a net buying mode.
Foreign investors bought a net 644.68 billion won worth of shares, while individuals and institutions sold a net 454.43 billion won and 233.37 billion won worth of shares, respectively.
Analysts said strong exports helped offset pressure from recent weakness in US equities, while investors bet on continued momentum driven by AI.
In 2025, exports reached an all-time high of $709.7 billion, surpassing the landmark $700 billion mark for the first time on the back of the growth of AI and the semiconductor industry, government data showed.
"The Kospi is expected to trade in a neutral-to-positive tone, supported by a virtuous cycle of global growth, sales and earnings, along with the government's full-scale efforts to stimulate the economy and the stock market," Kim Yong-gu, an analyst at Yuanta Securities, said.
On Wednesday (US time), US shares ended lower on the final trading day of 2025. The Dow Jones Industrial Average dropped 0.63 percent, while the tech-heavy Nasdaq composite slid 0.76 percent.
Big-cap tech shares led the upturn of the index.
Market bellwether Samsung Electronics soared 7.17 percent to 128,500 won, while chip giant SK hynix jumped 3.99 percent to 677,000 won, with both stocks hitting record highs.
But leading battery maker LG Energy Solution slid 2.04 percent to 361,000 won, and major chemical firm LG Chem dipped 3.15 percent to 322,500 won.
Bio giant Samsung Biologics fell 0.71 percent to 1,683,000 won, but major biopharmaceutical company Celltrion spiked 11.88 percent to 202,500 won amid expectations for its record high quarterly earnings and on news that it has completed the acquisition of a biopharmaceutical manufacturing plant in the United States from US drugmaker Eli Lilly.
Carmakers finished mixed. Top automaker Hyundai Motor grew 0.67 percent to 298,500 won, while its sister affiliate Kia decreased 0.99 percent to 120,600 won.
Leading shipbuilder HD Hyundai Heavy retreated 0.98 percent to 504,000 won, but its rival Hanwha Ocean went up 0.97 percent to 114,700 won.
Defense giant Hanwha Aerospace rose 0.53 percent to 946,000 won, while nuclear power plant builder Doosan Enerbility edged down 0.13 percent to 75,200 won.
Leading financial group KB Financial dipped 1.12 percent to 123,300 won, but internet portal operator Naver climbed 1.86 percent to 247,000 won. No. 1 steelmaker POSCO lost 2.46 percent to 297,500 won.
The local currency was quoted at 1,441.8 won against the greenback at 3:30 p.m., down 2.8 won from the previous session. (Yonhap)
