South Korean stocks experienced a significant rebound on Wednesday, with the Korea Composite Stock Price Index (KOSPI) climbing 3.29% to close at 5,735.66. This surge came as concerns about heavy investments in artificial intelligence (AI) infrastructure lessened, providing a boost to semiconductor shares. The positive shift in investor sentiment was further supported by better-than-expected earnings from U.S.-based AI server manufacturer Super Micro Computer.
The rally in South Korean stocks marked a recovery from sharp losses in the previous session, with major technology companies like Samsung Electronics and SK hynix seeing notable gains. Samsung Electronics shares rose 5.67% to 223,500 won, while SK hynix advanced 5.81% to 1.29 million won. The Korea Exchange temporarily suspended program buying for five minutes after KOSPI 200 futures rose more than 5%, an action not seen in two months.
Other companies also benefited from the improved market conditions. SK Corp., the holding company of SK Group, saw its shares rise by 12.62% to 482,000 won, recovering from earlier declines. LS Electric climbed 7.02% to 166,100 won, buoyed by strong third-quarter earnings driven by increased demand for power equipment in AI data centers.
Despite the overall positive market trend, not all companies fared well. Defense company LIG D&A experienced a 9.03% drop to 498,500 won after South Korea’s arms procurement agency banned it from bidding on defense contracts for two years due to bribery allegations.
Foreign investors played a key role in the market’s recovery, purchasing a net 659.96 billion won worth of South Korean shares. Additionally, the Korean won strengthened slightly against the U.S. dollar, trading at 1,325.2 won, up by 0.8 won from the previous session’s close.
The rebound in South Korean stocks reflects renewed investor confidence in technology stocks, driven by strong corporate earnings that helped alleviate concerns about AI infrastructure investments and broader market pressures.
