FX.co ★ South Korean Shares Climb on Chip Rally

On Friday, the benchmark KOSPI index increased by 0.74%, reaching around 5,258, thereby extending its upward momentum to hit a new record high. This surge was primarily driven by semiconductor stocks, boosted by renewed optimism in the chip cycle. Investors focused on prominent chipmakers following robust fourth-quarter earnings and ongoing demand fueled by artificial intelligence, strengthening the outlook for continued growth in advanced memory products. Key performers in this rally were Samsung Electronics, which rose by 1.80%, and SK Hynix, which soared by 7.26%. In contrast, Hyundai Motor saw a decline of 3.41%, Kia Corporation dropped by 1.29%, LG Energy Solution decreased by 1.44%, and Doosan Enerbility fell by 2.45%. Market participants exhibited caution within export-oriented sectors, particularly in the automotive and manufacturing industries, opting for selective profit-taking. This strategy followed news that U.S. President Donald Trump had issued a threat to reinstate 'reciprocal' tariffs and auto duties on South Korea to 25 percent.