Kospi nears 7,000 as chip rally drives fresh peak

Seoul’s benchmark Kospi breached the 6,900 mark for the first time Monday, propelled by a record-setting rally in semiconductor stocks, as SK hynix’s market capitalization topped 1 quadrillion won ($680 billion).

The rally gathered momentum from the opening bell.

The Kospi began the session 2.79 percent higher at 6,782.93, quickly surpassing its previous intraday high set Thursday. The index surged more than 100 points within hours and climbed to an intraday peak of 6,937 near the end of daytime trading, before closing just off that level at 6,936.99.

At the closing bell, the Kospi was less than 1 percent away from the 7,000-point milestone.

Investor appetite was boosted by strong gains in US tech stocks during the Labor Day long weekend in Korea, with the S&P 500, Nasdaq and PHLX Semiconductor Index all extending their rallies on solid earnings.

Foreign and institutional investors led the advance, posting net purchases of 3 trillion won and 1.94 trillion won, respectively. Retail investors moved in the opposite direction, offloading 4.8 trillion won of shares.

Semiconductor heavyweights were the primary drivers of the surge. SK hynix climbed as much as 12.8 percent from Friday to 1.45 million won, lifting its market capitalization above 1 quadrillion won for the first time. The milestone makes it the second Korean company, following Samsung Electronics, to reach that level.

Samsung Electronics also posted record highs, rising as high as 4.8 percent intraday to 232,500 won, crossing the 230,000 won threshold for the first time.

Shares of SK Square, SK hynix’s largest shareholder, surged in tandem, jumping more than 18 percent at one point to a peak of 998,000 won, before paring gains.

The two chip giants have been at the center of the Kospi’s rally this year. Since the end of 2025, Samsung Electronics has risen 94 percent, while SK hynix has surged 123 percent.

Despite the sharp gains, market expectations remain bullish, supported by the ongoing semiconductor upcycle and sustained artificial intelligence investment by major US tech companies.

Both companies have already reported record earnings for the first quarter. Samsung Electronics posted revenue of 133.9 trillion won and operating profit of 57.2 trillion won. SK hynix reported revenue of 52.6 trillion won and operating profit of 37.6 trillion won, driven by strong demand for AI-related memory products.

Analysts expect the momentum to continue into the second quarter. Eugene Investment & Securities projected that SK hynix’s revenue and operating profit would climb further to 82.3 trillion won and 63.7 trillion won, respectively, and set a target price of 2.3 million won.

Brokerages have likewise raised their outlook for Samsung Electronics. Daol Investment & Securities set the highest target price at 390,000 won on the same day.

"Server memory demand in 2027 is expected to grow by at least 60 percent in bit terms, suggesting that supply shortages will deepen even under current demand projections," said Son In-jun, an analyst at Eugene Investment & Securities. "As a result, memory-makers are selecting key customers and negotiating long-term supply agreements on favorable terms, including minimum price guarantees."

Monday's rally follows a strong April, when the Kospi gained 30 percent, the biggest monthly increase among major markets. Year to date, the index is up nearly 65 percent.

The secondary Kosdaq also advanced, closing 1.8 percent higher at 1,213.74.

The Korean won strengthened alongside the equity rally. The currency opened onshore trading at 1,472.9 against the US dollar, up 10.4 won from the previous session, and extended gains as foreign inflows picked up during the day. It closed regular trading at 1,462.8, its strongest level against the greenback since the Middle East conflict escalated in late February.