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Kospi hits new record to approach 6,700 as investors bet on chip demand

Published: 29 Apr. 2026, 18:31 Updated: 29 Apr. 2026, 19:06

YOON SO-YEON
[email protected]

Currency traders work near a screen showing the Kospi and the dollar-won exchange rate at the foreign exchange trading room of the Hana Bank headquarters in central Seoul on April 29. [AP/YONHAP]

Just inches away from a new 6,700-point record, Seoul stocks closed at a fresh peak on Wednesday, a mere 9.1 points shy as investors bet chip demand will remain solid amid woes over the AI boom.

The benchmark Kospi added 49.88 points, or 0.75 percent, to hit a fresh record high of 6,690.90 after rising as high as 6,716.20, extending its gains to a third consecutive day.

Trade volume was heavy at 712.3 million shares worth 31 trillion won ($21 billion), with winners outnumbering losers 478 to 362. Foreigners net sold 606.9 billion won worth of local shares, but retail investors and institutions scooped up 167.4 billion won and 477.7 billion won, respectively.

The Kospi opened lower, tracking overnight losses on Wall Street, sparked by a slump in tech heavyweights on a report that an executive from OpenAI, the company behind ChatGPT, raised concerns over its revenue and user targets. The prolonged peace talks between the United States and Iran as well as the announcement by the United Arab Emirates that it will quit the Organization of the Petroleum Exporting Countries also added weight to the selling pressure, while the OpenAI shock also trickled to the tech-heavy Kosdaq market.

Still, the main Korean bourse turned higher in the afternoon as the Financial Times reported that investors are betting on a prolonged boom for memory chipmakers amid continued AI demand.

"Just one hour after the Financial Times report, foreign investors, who had dumped over 400 billion won in the Kospi's electrical and electronics sector, trimmed their sell-offs to around 100 billion won," Seo Sang-young, an analyst at Mirae Asset Securities, said.

Currency traders work near a screen showing the Kospi and the dollar-won exchange rate at the foreign exchange trading room of the Hana Bank headquarters in central Seoul on April 29. [AP/YONHAP]

The market's record-breaking run came after a severe rout since the outbreak of war in the Middle East. After surpassing the 5,000-point mark in late January and topping another milestone of 6,000 points in February, the Kospi erased most of its gains in March following the outbreak of the Iran war. But continued hopes for the AI boom pushed up major tech shares amid eased tension in the Middle East.

Market top-cap Samsung Electronics, the world's leading memory chipmaker, climbed 1.8 percent to 226,000 won, paring earlier losses after the report. Its chipmaking rival SK hynix dropped 0.54 percent to 1.29 million won.

AI investment firm SK Square jumped 2.34 percent to 830,000 won, and LS Electric surged 4.4 percent to 273,000 won. The heavy industry sector shares also gained ground, with power plant manufacturer Doosan Enerbility up 1.1 percent to 129,000 won and defense giant Hanwha Aerospace rising 1.79 percent to 1.42 million won.

Major shipbuilder HD Hyundai Heavy soared 3.45 percent to 690,000 won, and defense industry leader Hyundai Rotem spiked 7.98 percent to 264,000 won. LG Chem escalated 3.43 percent to 407,500 won, and battery maker Samsung SDI surged 4.71 percent to 712,000 won.

A currency trader reacts near a screen showing the Kospi and the dollar-won exchange rate at the foreign exchange trading room of the Hana Bank headquarters in central Seoul on April 29. [AP/YONHAP]

On the other hand, Samsung Biologics lost 2.06 percent to 1.47 million won and Korea Zinc dropped 1.41 percent to 1.6 million won. Hanmi Semiconductor dipped 2.59 percent to 357,500 won.

"A near-30 percent surge in the Kospi in April is putting technical pressure on the local market," said Byun Joon-ho, a researcher at IBK Investment & Securities, warning of a slower increase for the upcoming month. "The market not only starts May with pressure, but also faces the seasonality effect, also known colloquially as the 'Sell in May' trend, which is likely to put investors in a wait-and-see mode."

Affected by the geopolitical uncertainties stemming from the Middle East, the Korean won weakened by 5.4 won compared to the previous session, trading at 1,479 won against the dollar at 3:30 p.m.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys shed 0.4 basis points to 3.525 percent, while the return on the benchmark five-year government bonds dropped 1.2 basis points to 3.706 percent.

BY YOON SO-YEON, YONHAP [[email protected]]