Seoul: South Korean shares saw a significant rise of nearly 3 percent as the market closed on Wednesday, fueled by optimism regarding a policy push from the newly inaugurated Lee Jae-myung administration. The Korean won also strengthened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 71.87 points, or 2.66 percent, ending at 2,770.84. The trade volume was substantial, with 485.85 million shares traded, amounting to 11.95 trillion won (approximately US$8.7 billion). The market saw 798 stocks gaining compared to 119 decliners.
The surge was partially driven by foreign and institutional investors, who purchased a net 1.05 trillion won and 203.48 billion won, respectively. Conversely, individual investors sold a net 1.22 trillion won. Analysts attributed the foreign interest in local stocks to expectations that the new government would bolster key sectors.
Globally, the Dow Jones Industrial Average saw a rise of 0.51 percent, and the Nasdaq Composite increased by 0.81 percent.
Lee Jae-myung, representing the liberal Democratic Party, secured victory in the presidential election against Kim Moon-soo from the conservative People Power Party. This election followed the ousting of former President Yoon Suk Yeol after martial law was declared in December. Lee commenced his five-year term earlier in the day.
The majority of large-cap stocks experienced gains. Samsung Electronics, a market leader, rose by 1.76 percent to 57,800 won, while SK hynix saw a 4.82 percent increase to 217,500 won. Hyundai Motor, the leading carmaker, climbed 1.09 percent to 186,000 won, and Korean Air, the national flag carrier, gained 0.66 percent to 22,800 won.
Mirae Asset Securities experienced a significant surge of 13.25 percent to 17,690 won, reflecting expectations linked to Lee's commitment to usher in a "KOSPI 5,000 era" through revitalized economic growth. LG Energy Solution, a leading battery manufacturer, rose by 1.41 percent to 288,500 won, and POSCO Holdings, the top steelmaker, increased by 0.61 percent to 245,500 won.
Conversely, Korea Electric Power Corp., a state-run utility, fell by 1.5 percent to 29,650 won, and AmorePacific, a leading cosmetics firm, declined by 0.15 percent to 134,100 won.
The local currency was quoted at 1,369.50 won against the U.S. dollar at 3:30 p.m., marking an increase of 3.6 won from the previous session.