An electronic display board at the Korea Exchange in Yeouido, Seoul, shows the closing figures for the KOSPI index and major stocks, including Samsung Electronics and SK Hynix, on October 16. On the day, market heavyweights Samsung Electronics and SK Hynix closed at record highs of 97,700 won, up 2.84 percent, and 452,500 won, up 7.10 percent, respectively, from the previous session. (Yonhap)
SEOUL, Oct. 16 (Korea Bizwire) — South Korea’s main stock index soared to a record high on Thursday, buoyed by optimism over a potential trade breakthrough with the United States and strong foreign buying.
The benchmark KOSPI rose 2.49 percent to close at 3,748.37, breaking both its intraday and closing records and surpassing the 3,700 mark for the first time in history. The index’s market capitalization expanded to 3,086 trillion won ($2.18 trillion), up 2.47 percent from the previous day.
Foreign and institutional investors led the rally, purchasing a combined 14 trillion won worth of stocks, while retail investors offloaded shares to take profits. Tech and automotive shares drove much of the gains, with Hyundai Motor jumping 8.28 percent and Kia advancing 7.23 percent. Samsung Electronics gained 2.84 percent to finish at an all-time high of 97,700 won, while SK Hynix surged 7.1 percent.
Dealers converse at the main trading room of Woori Bank in central Seoul on October 16, the day the KOSPI surpassed the 3,700 mark for the first time in history. The benchmark index closed at 3,748.37, up 91.09 points, or 2.49 percent, from the previous session.
Analysts said optimism about a potential resolution to the stalled South Korea-U.S. trade negotiations fueled the rally. U.S. Treasury Secretary Scott Bessent said he expected “issues to be resolved” within ten days, signaling progress ahead of the upcoming APEC summit in Gyeongju.
“Expectations for a trade deal with the U.S. were the key driver of today’s surge,” said Lee Kyung-min of Daishin Securities. “The market seems to believe that both countries are nearing a visible outcome.”
The KOSDAQ edged up 0.08 percent to 865.41, supported by gains in secondary battery and biotech shares.
Despite lingering concerns over U.S.-China trade tensions, investors appeared to shrug off risks amid what some analysts described as a “TACO trade” — a renewed appetite for risk assets under the belief that former U.S. President Donald Trump would ultimately avoid escalation.
With the APEC summit set to open later this month, market watchers said easing global trade anxieties could further extend Seoul’s record-breaking rally.
Ashley Song (ashley@koreabizwire.com)
