Kospi breaks 3,700 mark for first time at midday as trade deal hopes grow

The Kospi surpassed 3,700 for the first time on Thursday, continuing its streak of record highs as hopes grew over a positive outcome in ongoing tariff negotiations between Korea and the United States.

The Korean bourse Kospi surpasses the 3,700 mark during intraday trading on Oct. 16. [YONHAP]

The Kospi surpassed 3,700 for the first time on Thursday, continuing its streak of record highs as hopes grew over a positive outcome in ongoing tariff negotiations between Korea and the United States.

As of 11 a.m., the benchmark index was up 55.19 points, or 1.51 percent, from the previous session to 3,712.47, according to the Korea Exchange. The index had closed above 3,650 for the first time the day prior and climbed past 3,700 just a day later.

The rally was driven by growing optimism over the outcome of bilateral trade talks. Kim Yong-beom, policy chief at the presidential office, told reporters Thursday morning that he was “optimistic” about the negotiations as he departed for the United States alongside Trade Minister Kim Jung-kwan. The minister also mentioned progress on discussions about a potential Korea-U.S. currency swap, saying that “many misunderstandings and gaps in understanding have been significantly narrowed” with the U.S. side.

On Wednesday, U.S. Treasury Secretary Scott Bessent told reporters that he was confident disagreements could be resolved within 10 days.

Investor sentiment lifted shares of Korean automakers, which had been among the hardest hit by U.S. tariffs. Hyundai Motor jumped 6.71 percent, and Kia rose 6.36 percent, helping push the Kospi higher overall. Samsung Electronics, which posted a surprise earnings beat on Tuesday, climbed 2.42 percent, inching closer to the 100,000 won ($70.5) mark per share that Samsung shareholders are rooting for.

SK, however, fell 6.26 percent. The drop followed a Supreme Court decision earlier in the day to send Chairman Chey Tae-won’s divorce case with Roh So-yeong back to the Seoul High Court for a retrial over asset division, raising concerns over corporate uncertainty. The appellate court had previously ordered Chey to pay Roh 1.38 trillion won in asset division and 2 billion won in alimony.

Securities firms forecast that the Kospi may climb even higher. Korea Investment & Securities raised its one-month upper-end projection for the index from 3,500 to 3,750.

“We reflected the government’s shareholder return policy and the U.S. Federal Reserve’s continued monetary easing stance,” said analyst Kim Dae-jun. However, he cautioned that renewed U.S.-China trade tensions and a weakening won against the dollar are headwinds. If the won-dollar exchange rate exceeds 1,500 won, he added, the bull market could reverse.

Kim Se-rin, an analyst at KB Securities, said dividend season is approaching and suggested focusing on undervalued, high-dividend stocks that have lagged in recent rallies.

U.S. markets closed mixed overnight. The Dow Jones Industrial Average slipped 0.04 percent, while the S&P 500 and Nasdaq rose 0.4 percent and 0.66 percent, respectively. The gains were buoyed by stronger-than-expected third-quarter earnings from major banks, including Morgan Stanley, though concerns over rekindled U.S.-China trade tensions kept broader sentiment in check.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]