Seoul: South Korean stocks surged to their highest level in 11 months on Monday, buoyed by a rally in chip shares and optimism over potential policy measures by the Lee Jae-myung administration, alongside impending trade discussions between the United States and China. The local currency also appreciated to an eight-month high against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) gained 43.72 points, or 1.55 percent, closing at 2,855.77, thus extending its winning streak to a fourth consecutive session. This marked the index's highest level since July 16, 2024, when it concluded at 2,866.09. The trade volume was substantial, with 528.24 million shares worth 13.61 trillion won (approximately US$10.03 billion) changing hands, and advancing stocks outnumbering declining ones by 700 to 200.
Foreign investors were net buyers of shares worth 980.0 billion won, while individual and institutional investors sold shares worth 229.67 billion won and 721.53 billion won, respectively. The market opened significantly higher and maintained its upward trajectory, fueled by investor hopes for reduced global trade tensions ahead of a meeting between senior U.S. and Chinese officials in London later in the day. There is also heightened anticipation for a series of economic measures from the Lee administration.
On Friday, during a telephone conversation, Lee and U.S. President Donald Trump agreed to pursue a "mutually satisfactory" resolution regarding the U.S.'s extensive tariff measures, as stated by Seoul's presidential office. Semiconductor and automotive stocks spearheaded the rise in the index.
Samsung Electronics, a market heavyweight, climbed 1.18 percent to 59,800 won, while its competitor SK hynix rose 2.0 percent to 229,000 won. Leading automaker Hyundai Motor surged 4.32 percent to 197,800 won, with its affiliate Kia Motors increasing 2.36 percent to 95,300 won. Prominent biotech firm Samsung Biologics advanced 1.37 percent to 1.03 million won, and Celltrion rose 1.97 percent to 160,200 won.
In the financial sector, KB Financial saw a significant rise of 4.14 percent to 110,700 won, whereas the top steelmaker POSCO Holdings experienced a modest growth of 0.39 percent to 258,000 won. Naver, the leading online portal operator, increased 3.82 percent to 198,500 won, and Kakao, the operator of the dominant mobile messenger in the country, surged 16.03 percent to 51,400 won.
Conversely, major battery manufacturer LG Energy Solution fell 2.06 percent to 285,000 won, and defense leader Hanwha Aerospace declined 2.76 percent to 880,000 won. The local currency was valued at 1,356.4 won against the U.S. dollar at 3:30 p.m., marking an increase of 2.0 won from the previous session, and reaching its highest point since October 14, 2024, when it was quoted at 1,355.9 won to the dollar.
Bond prices saw an upward trend as well, with the yield on three-year Treasurys dropping 0.7 basis points to 2.405 percent, and the return on the benchmark five-year government bonds decreasing by 2.7 basis points to 2.570 percent.