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Kospi jumps on chip rally, won rises to 2-month high

Published: 29 Dec. 2025, 17:14

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 4,220.56 points on Dec. 29, up 90.88 points, or 2.20 percent, from the previous trading session. [YONHAP]

Shares closed markedly higher Monday, led by strong gains in big-cap semiconductor shares in a year-end rally. The local currency strengthened to its highest level in nearly two months against the dollar.

The benchmark Kospi added 90.88 points, or 2.2 percent, to close at 4,220.56, its highest level since Nov. 3.

Trade volume was moderate at 497.51 million shares worth 14.35 trillion won ($10.02 billion), with losers beating winners 571 to 316.

The index opened higher and extended gains further after offshore investors turned to a net buying mode.

Foreign investors picked up a net 331.46 billion won worth of shares, while institutions and retailers sold a net 285.96 billion won and 9.06 billion won worth of shares, respectively.

"SK hynix's removal from the investment warning list helped support investor sentiment and extend the year-end rally," Han Ji-young, an analyst at Kiwoom Securities, said.

The country's equities and derivatives markets will be closed on Wednesday, with the first trading day of the new year set for Jan. 2.

Chip giant SK hynix spiked 6.84 percent to 640,000 won, after the bourse operator, the Korea Exchange, lifted its investment warning designation as of Monday. The warning had been in place for 10 trading sessions from Dec. 11 following recent sharp gains.

Market bellwether Samsung Electronics advanced 2.14 percent to 119,500 won.

Carmakers gathered ground. Top automaker Hyundai Motor surged 2.62 percent to 293,500 won, and its sister affiliate Kia increased 1.09 percent to 121,100 won.

Defense giant Hanwha Aerospace skyrocketed 9.08 percent to 949,000 won, and nuclear power plant builder Doosan Enerbility soared 3.94 percent to 76,500 won.

But leading battery maker LG Energy Solution slid 0.91 percent to 380,000 won on news that it has canceled the supply deal worth 3.9 trillion won signed with U.S.-based battery pack producer Freudenberg Battery Power System.

Shipbuilders ended mixed. Leading shipbuilder HD Hyundai Heavy grew 2.15 percent to 523,000 won, while its rival Hanwha Ocean lost 0.77 percent to 115,600 won.

Internet portal operator Naver jumped 4.54 percent to 242,000 won, and No. 1 steelmaker Posco rose 1.95 percent to 314,000 won.

The local currency was quoted at 1,429.8 won against the greenback at 3:30 p.m., down 0.73 percent from the previous session's exchange rate at 1,440.3 won.

It marked the strongest level since Nov. 3, when it finished at 1,428.8 won, as foreign exchange authorities have warned against the won's recent "excessive" weakness and pledged "strong" policy execution to stabilize the market.

Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys lost 1.9 basis points to 2.939 percent, while the return on the benchmark five-year government bonds went down 1.4 basis points to 3.226 percent.

Yonhap