Seoul: South Korean stocks opened higher Monday, driven by chip shares, as the government decided to scrap a plan to lower the threshold of major shareholders subject to the capital gains tax. The benchmark Korea Composite Stock Price Index (KOSPI) added 13.6 points, or 0.4 percent, to 3,409.14 in the first 15 minutes of trading.

According to Yonhap News Agency, the KOSPI has rallied in recent sessions, with the index reaching a new record high for the third consecutive day Friday, closing at 3,395.54. Foreign investors went on a net buying mode, offsetting institutional and individual selling, which contributed to the market’s positive performance.

Investors welcomed the news that the government decided to keep the threshold for the capital gains tax on stock holdings at the current level of 5 billion won (US$3.6 million), reversing its earlier proposal to lower it to 1 billion won amid opposition. This decision positively impacted market sentiment, especially among major chip manufacturers.

Market bellwether Samsung Electronics saw an increase of 2.12 percent, and chip giant SK hynix advanced 1.83 percent. Leading battery maker LG Energy Solution edged up 0.14 percent, while major chemical firm LG Chem increased 0.34 percent. However, defense giant Hanwha Aerospace dipped 0.5 percent, and major bio company Samsung Biologics lost 0.58 percent.

Leading shipbuilder HD Hyundai Heavy sank 1.57 percent, and No. 1 financial firm KB Financial Group went down 0.34 percent. Meanwhile, automakers opened lower, with top automaker Hyundai Motor dipping 3.36 percent and its sister affiliate Kia retreating 2.93 percent.

The local currency was trading at 1,391.85 won against the greenback at 9:15 a.m., down 3.65 won from the previous session.