South Korean shares hit all-time high on AI-led chipmaker rally
Currency dealers work as an electronic board displays the Korea Composite Stock Price Index (Kospi), the exchange rate between the US dollar and South Korean won and the Korea Securities Dealers Automated Quotations (Kosdaq) at the dealing room of a bank in Seoul, South Korea, on May 6, 2026. (File photo: Reuters/Kim Soo-hyeon)
SEOUL: South Korean shares hit record highs on Monday (May 11), as chipmakers extended gains amid optimism over artificial intelligence, bolstered by a rally in US peers and upbeat data.
The benchmark Kospi rose as much as 5.05 per cent in early trade to an all-time high of 7,876.60 in morning trade. During the session, a trading curb was activated by sharp gains in the index.
Samsung Electronics rose more than 5 per cent and SK Hynix gained more than 10 per cent, with both chipmakers hitting record levels.
Last week, the Kospi rose 13.6 per cent, the biggest weekly jump since late 2008.
It has risen 85 per cent so far this year, after rising 76 per cent last year, as South Korea has emerged as the world's best-performing stock market amid an AI boom.
The Philadelphia Semiconductor Index rose 5.5 per cent on Friday, as chipmaker Micron Technology surged 15.5 per cent, while Apple and Intel also rallied on a report of their deal on chip production.
South Korea's exports rose 43.7 per cent in the first 10 days of this month from a year earlier, led by a 150 per cent surge in chip sales, trade data showed on Monday.
"There is profit-taking pressure rising among all investor groups, so it is necessary to note that short-term volatility can grow in semiconductor stocks as the Kospi extends gains this week," said Han Ji-young, an analyst at Kiwoom Securities.
The Kospi's rally on Monday compared with Japan's Nikkei and Taiwanese stocks rising less than 1 per cent, while US stock futures fell in Asian trading hours amid uncertainty over the geopolitical conflict in the Middle East.
It was led by retail investors, whose net purchases totalled 1.2 trillion won (US$815.66 million), while foreigners were net sellers.
Among other sectors, automakers and battery manufacturers gained. Still, of the total 894 traded issues, 197 shares advanced, while 681 declined.
The won was quoted at 1,469.4 per dollar on the onshore settlement platform, 0.48 per cent lower than its previous close at 1,462.3.
The most liquid three-year Korean treasury bond yield rose by 0.6 basis points to 3.567 per cent, while the benchmark 10-year yield fell by 0.1 basis points to 3.911 per cent.
