South Korea’s stock market continued its remarkable rally on Tuesday, with the benchmark KOSPI climbing to yet another record high — a move President Lee Jae-myung described as proof that the market is “returning to normalcy.”
The index briefly flirted with the 3,900-point threshold during intraday trading before closing at 3,823.84, up 0.24 percent from the previous session. It marked the fifth consecutive day of gains and the latest milestone in a months-long surge led by semiconductor giants.
“After surpassing 3,800 points for the first time yesterday, the market is reaching new highs again today,” Lee said at a Cabinet meeting. “Korea’s stock market is on the rightful path — it’s finding its balance and returning to where it should be.”
Lee linked the rally to a broader economic shift, calling it part of a process in which ordinary Koreans are diversifying their wealth beyond speculative real estate or non-productive assets.
Semiconductors Power the Rally
The market’s momentum was fueled largely by SK hynix and Samsung Electronics, which both touched historic peaks early in the day before trimming gains on profit-taking.
SK hynix rose as high as 502,000 won, crossing the symbolic half-million mark for the first time on expectations of record-breaking third-quarter earnings. Samsung Electronics also hit a record 99,900 won, inching toward the coveted six-figure price level before closing slightly lower.
Hyundai Motor joined the rally, reaching a 52-week high of 267,000 won on optimism about reduced U.S. auto tariffs, before ending at 256,500 won, up more than 3 percent on the day.
Despite the afternoon pullback, the KOSPI maintained its record-setting streak as institutional investors absorbed selling pressure from foreign and retail investors.
Foreign investors offloaded 12.5 billion won worth of stocks, while retail traders sold 155.5 billion won. Institutions purchased about 211.6 billion won, making them the only net buyers of the day.
Analysts Grow More Bullish on SK hynix
Market analysts are increasingly optimistic about SK hynix’s outlook, noting that its share price has nearly doubled in two months — from 245,000 won in August to nearly 500,000 won this week.
Daishin Securities analyst Ryu Hyung-keun raised his target price to 550,000 won, citing “a full-scale growth cycle” and “undisputed technological leadership” in key memory products.
KB Securities went further, projecting 600,000 won, saying the company stands to benefit from “surging AI-driven data-center demand” and “tight memory supply pushing prices higher.”
A Symbol of Confidence
The KOSPI’s return to the upper 3,000s — after years of stagnation and global volatility — carries symbolic weight in Korea’s political and economic circles.
While some investors warn that valuations are stretched, the government sees the market’s strength as a reflection of renewed confidence in Korea’s corporate and fiscal fundamentals.
For now, Seoul’s rally places the KOSPI among the world’s best-performing major indices of 2025 — a sign, as President Lee put it, that Korea’s markets “are not overheating, but recovering their rightful position.”