Home > Business > Finance

Kospi flirts with 6,000-mark as market weathers U.S. tariff uncertainties

Published: 23 Feb. 2026, 18:35 Updated: 23 Feb. 2026, 19:34

KIM MIN-YOUNG
[email protected]

The Kospi is seen in the trading room of Hana Bank in central Seoul on Feb. 23. [YONHAP]

The Kospi extended its skyrocketing rally Monday despite uncertainty over U.S. reciprocal tariffs, breaking above 5,900 points for the first time in intraday trading to approach the 6,000 mark.

The Korean benchmark bourse rose 37.56 points, or 0.65 percent, to finish at an all-time high of 5,846.09. On Friday, the index topped the 5,800-point level for the first time.

The U.S. Supreme Court ruled Friday that President Donald Trump’s "reciprocal" tariffs imposed under the International Emergency Economic Powers Act are unlawful. Trump announced plans the same day to impose a 15 percent tariff by invoking Section 122 of the Trade Act, but the move did not weigh on the local stock market.

The Kospi has been on a strong upward trend this year, surpassing the 5,000-point mark for the first time on Jan. 27 and crossing the 5,500-point mark on Feb. 12.

The rally mirrored gains on Wall Street last week. On Friday, the Dow Jones Industrial Average advanced 0.47 percent, while the tech-heavy Nasdaq Composite climbed 0.9 percent.

Technology and automobile shares led the advance. Market bellwether Samsung Electronics rose 1.53 percent to 193,000 won ($133), while chip giant SK hynix climbed 0.21 percent to 951,000 won.

U.S. President Donald Trump, left, alongside Commerce Secretary Howard Lutnick, speaks about the Supreme Court striking down most of his tariffs during a press conference in the briefing room at the White House in Washington on Feb. 20. [EPA/YONHAP]

Top automaker Hyundai Motor jumped 2.75 percent to 523,000 won, and its smaller affiliate Kia rose 0.52 percent to 172,700 won. Flag carrier Korean Air soared 5.17 percent to 26,450 won, and leading budget carrier Jeju Air jumped 7.87 percent to 6,580 won.

Among decliners, defense contractor Hanwha Aerospace fell 0.48 percent to 1,236,000 won, and shipping company HMM declined 0.86 percent to 22,950 won.

Analysts wager on a continuing upward trend for the Korean market, especially on the ongoing chip surge. Korea Investment & Securities raised this year's Kospi target from 5,630 to 7,250 and increased its earnings per share projection 5 percent to 605.

"The main rationale for the index's steep upward trend is the surge in semiconductor profits, a factor that remains consistent from the start of the year to now," said Korea Investment & Securities analyst Kim Dae-jun in a report on Friday. "In a phase where profit sensitivity has increased, it is worth paying attention to sectors capable of earnings improvement, such as automotive, banking, shipbuilding, and machinery."

"The rally was led by technology firms, which have spearheaded overall market gains this year," said Na Jeong-won, an analyst at NH Investment & Securities. "The index also drew support from anticipated market reform measures aimed at enhancing shareholder returns and improving valuations."

The logo of SK hynix is seen on its product during the 26th Semiconductor Exhibition in southern Seoul on Oct. 23, 2024. [REUTERS/YONHAP]

The reform measures involve a third revision of the Commercial Act, centered on mandating the retirement of treasury shares.

The revised bill forces companies to retire the treasury shares they buy back. If a company wants to sell or use those shares instead, it would have to submit a plan explaining why and how it will do so, and get approval from shareholders at the annual general shareholder meeting.

The bill passed the Legislation and Judiciary Committee’s bill review subcommittee on Friday, and is expected to pass a plenary session of the National Assembly on Tuesday.

Monday's trade volume was moderate at 1.46 billion shares worth 31.51 trillion won, with winners outnumbering losers 545 to 346. Retail investors purchased a net 1.08 trillion won worth of stocks, while foreign and institutional investors sold a net 1.09 trillion won and 142.14 billion won, respectively, in profit-taking.

The local currency strengthened 6.6 won from the previous session to trade at 1,440 against the greenback at 3:30 p.m.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1.1 basis points to 3.154 percent, and the return on the benchmark five-year government bonds also climbed 1.4 basis points to 3.405 percent.

BY KIM MIN-YOUNG, YONHAP [[email protected]]