Kospi hits 5,000 for first time amid chip stock rally

(Yonhap)

South Korea‘s benchmark Kospi broke above the 5,000 level for the first time, after a boost in investor sentiment following reports that the United States has withdrawn planned tariffs on Europe.

The Kospi stood at 5,002.02 as of 9:14 a.m. on Thursday, up 1.88 percent from the previous session. The benchmark index opened at 4,987.06, up 1.57 percent from the previous close before extending its gains to surpass the 5,000 level.

The milestone comes just three months after the index crossed the 4,000 level for the first time in October 2025.

On Thursday, individual investors drove the rally with net purchases of 406.5 billion won ($277.33 million). Foreigners and institutions were net sellers, offloading 187.4 billion won and 220.4 billion won each.

Overnight, Wall Street rallied after the U.S. President Donald Trump withdrew planned tariffs on eight European countries, pushing all three major indices higher.

The Dow Jones Industrial Average rose 1.21 percent, while the S&P 500 and Nasdaq indices advanced 1.16 percent and 1.18 percent, respectively.

“Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote on his Truth Social platform. “Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1 on 8 European countries.”

He also said that military force would not be used in relation to the Greenland annexation issue, easing geopolitical tensions.

The Philadelphia Semiconductor Index also jumped 3.18 percent as shares of Nvidia Corp. rose 2.95 percent and Micron Technology Inc. surged 6.61 percent

This positive momentum from U.S. markets exerted upward pressure on Korean stocks.

“It is positive that the U.S. and Europe have stepped back from a hardline confrontation and shifted into negotiation mode,” said Han Ji-young, an analyst at Kiwoom Securities Co. “The domestic stock market is expected to inherit the upbeat sentiment from Wall Street today.”

Among heavyweight stocks by market capitalization, Samsung Electronics Co. shares surged 4.48 percent, touching 157,000 won to set a new all-time high.

Shares of SK hynix Inc. also jumped 4.19 percent.

Hyundai Motor Co. also saw its shares climb 5.1 percent to a new high of 590,000 won while shares of LG Energy Solution Ltd. gained 2.15 percent, Kia Corp. went up 0.70 percent, Doosan Enerbility Co. climbed 2.30 percent, and SK square Co. advanced 3.49 percent.

Meanwhile, defense stocks such as Hanwha Aerospace Co. fell 2.13 percent amid easing geopolitical tensions, while shares of Samsung Biologics Co. declined 3.84 percent and HD Hyundai Heavy Industries Co. edged down 0.16 percent.

The secondary Kosdaq index also rose 0.82 percent to 959.1.

Individual investors were net buyers while foreign investors and institutions were net sellers.

Shares of Alteogen Inc. rose 0.54 percent while those of EcoPro BM Co. went up 5.81 percent, EcoPro Co. up 4.63 percent, HLB Co. up 2.39 percent, and Sam Chun Dang Pharm. Co. up 3.57 percent.

Shares of Rainbow Robotics Co., on the other hand, declined 1.56 percent, Peptron Inc. fell 0.94 percent, and Leeno Industrial Inc. slipped 0.31 percent.

The Kospi closed at 4,952.53, up 0.87 percent from the previous session while the Kosdaq ended at 970.35, up 2.00 percent. Samsung Electronics closed at 152,300 won, SK hynix at 755,000 won, and Hyundai Motor at 529,000 won.