FX.co ★ South Korean Shares Hold at Record

The benchmark KOSPI increased by 0.1% to approximately 3,401 on Monday, surpassing the 3,400 threshold for the first time and maintaining record levels. This upward movement was spurred by expectations of a rate cut from the Federal Reserve and relief regarding domestic tax policy. Anticipation of a 25-basis point rate cut by the U.S. Federal Reserve during its upcoming meeting boosted global risk appetite. Investors are also looking for cues on the potential for further monetary easing. Domestically, the government's decision to keep the KRW 5 billion limit for large shareholder capital gains tax unchanged—a move consistent with recent promises by President Lee—alleviated concerns about increased tax burdens, thereby encouraging foreign investments. On the corporate side, robust performance from major chipmakers, including SK Hynix, which gained 0.2%, and Samsung Electronics, climbing 1.9%, underpinned by optimism related to AI demand, supported the index. However, profit-taking activities curtailed additional gains, with declines observed in LG Energy Solution, which fell by 0.1%, and Hyundai Motor, down 2.9%.