South Korean Markets Post Strongest Weekly Performance Since June on Semiconductor Rally

Key Highlights

• The KOSPI finished Friday’s session at 6,977.94, climbing 2.42% intraday and momentarily surpassing 7,000 for the first time in three weeks
• Samsung Electronics posted weekly gains exceeding 18%; SK Hynix climbed approximately 12% over the week
• From its July 30 trough, the benchmark has rallied close to 25%, officially entering technical bull territory
• International investors purchased shares worth 3.03 trillion won (approximately $2.13 billion) net on Friday
• July’s U.S. Producer Price Index registered 4.7% annually, undershooting the anticipated 4.9% figure

South Korea’s benchmark equity index wrapped up its most impressive weekly performance since the beginning of June on Friday, powered by a robust comeback in chip stocks and encouraging U.S. inflation figures.

The KOSPI settled at 6,977.94, advancing 2.42% during Friday’s trading. The index momentarily pierced the 7,000 threshold for the first time in three weeks before retreating as market participants secured profits following five consecutive sessions of advances.

KOSPI Composite Index (^KS11)

The benchmark snapped a seven-week declining streak and has now climbed approximately 25% from its late-July bottom, officially qualifying as a technical bull market.

Semiconductor Leaders Power Market Rally

Samsung Electronics and SK Hynix spearheaded the week’s resurgence. Samsung was positioned to deliver weekly returns surpassing 18%, while SK Hynix climbed roughly 12% during the same timeframe. Friday’s session saw SK Hynix advance 3.26% to settle at 1,645,000 won, with Samsung rising 2.43% to close at 274,500 won.

These two stocks experienced particularly severe declines during last month’s technology sector retreat, which was triggered by apprehensions surrounding artificial intelligence investments and the forced liquidation of leveraged trades.

The memory chip industry received a confidence boost following Sandisk‘s optimistic long-range forecast presented at its investor day event. The firm projected annual revenue expansion in the mid- to upper-teens range extending through 2030 and committed to distributing 100% of surplus free cash flow to its shareholders.

International investors demonstrated strong buying activity Friday, acquiring shares worth 3.03 trillion won on a net basis, equivalent to roughly $2.13 billion. Domestic institutional and retail participants were net sellers.

Cooling U.S. Inflation Boosts Market Sentiment

U.S. inflation metrics published this week contributed positively to overall market sentiment. July’s Producer Price Index increased 4.7% on an annual basis, falling short of the projected 4.9% reading. Core PPI expanded 4.2%, matching consensus estimates.

These figures diminished worries about any potential near-term interest rate increases from the Federal Reserve, which helped strengthen investor sentiment throughout global markets, including South Korea.

Beyond semiconductors, additional sectors posted gains. Shipbuilding companies such as Hanwha Ocean and HD Korea Shipbuilding & Offshore Engineering surged after the United States announced it would permit foreign firms to construct up to two naval ships in their domestic facilities.

Automotive-related equities also advanced following news that Hyundai Motor Group is restructuring its robotics supply network.

LG Electronics saw higher trading after LG Group Chairman Koo Kwang-mo and Nvidia CEO Jensen Huang reconvened for the first time in two months to further develop their collaboration in physical artificial intelligence.

The Kosdaq similarly continued its upward trajectory, gaining 0.38% to finish at 864.65. The won ended trading at 1,418.3 against the dollar, weakening 1.1 won from the prior session.

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