KOSPI Hits Record High as AI Stocks Surge Amid U.S. Tariff Threat
Updated (2 articles)
Record‑setting KOSPI close confirms four‑day rally The benchmark KOSPI closed at 5,224.3 points, after peaking intraday at 5,321.68, extending a four‑session winning streak and setting a new all‑time high [1]. The modest 0.06 % rise added 3.11 points to the index, underscoring continued market momentum despite external pressures.
AI‑focused technology shares drive massive trading volume Investors exchanged 852 million shares worth roughly 34.7 trillion won (≈US$24.1 bn), with AI hardware and software firms attracting the strongest buying pressure [1]. Chipmakers supplying memory products also remained in favor, reflecting sector‑wide optimism about artificial‑intelligence demand. The volume surge outpaced typical daily activity, highlighting the potency of AI‑related capital flows.
U.S. tariff announcement tempers market optimism President Donald Trump signaled plans to raise “reciprocal” and auto tariffs on South Korean goods to 25 % from the current 15 %, prompting the won to slip to 1,439.5 per dollar [1][2]. While the tariff threat introduced caution, market participants treated the move as short‑term noise, keeping the index near record levels. Analysts note the policy risk could cap further upside if duties are implemented.
Foreign and domestic investor flows diverge sharply The Jan 30 report shows foreigners sold a net 1.9 trillion won, whereas the Jan 27 article records a foreign net purchase of 850 billion won, indicating contradictory data across the two days [1][2]. Domestic retail investors shifted from a net purchase of 2.2 trillion won on Jan 30 to a net sale of about 1 trillion won on Jan 27, while institutions moved from net selling 425 billion won to net buying 232 billion won. These mixed flows suggest volatility in investor sentiment amid external uncertainties.
Key equities reflect tech rally and sector‑specific gains Samsung Electronics slipped 0.12 % to 160,500 won, yet earlier it had risen 4.87 % to a record 159,500 won, while SK Hynix surged 5.57 % to 909,000 won, hitting a fresh high [1]. Brokerage stocks Mirae Asset and Kiwoom rose over 4 %, telecoms SK Telecom and KT gained 4.32 % and 1.43 % respectively, and Samsung SDI advanced 0.52 % after securing an undisclosed Tesla‑linked battery supply contract [1].
Bond yields and the won react to market dynamics Three‑year Korean Treasury yields climbed 3.2 bps to 3.138 % and five‑year yields rose 4.1 bps to 3.436 % on Jan 30, contrasting with the slight yield declines reported on Jan 27 (three‑year at 3.094 %, five‑year at 3.377 %) [1][2]. The won’s depreciation to 1,439.5 per dollar further reflects pressure from the tariff threat and broader global risk sentiment.
Sources
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1.
Yonhap: South Korean Stocks Reach Record High as AI Buying Persists Amid U.S. Tariff Threat – details KOSPI’s record close, AI‑driven buying, heavy volume, foreign net selling, tariff risk, and bond/yield movements .
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2.
Yonhap: Seoul Shares Close Above 5,000 Points Amid Tariff Threat – highlights first close above 5,000, foreign net buying, retail selling, tariff announcement impact, semiconductor record highs, and easing bond yields .
Timeline
Jan 27, 2026 – The KOSPI closes above 5,000 for the first time, jumping 135.26 points (2.73 %) to 5,084.85 as heavy trading of 472 million shares (~28 trillion won) fuels the rise[2].
Jan 27, 2026 – Foreign investors net‑buy 850 billion won while domestic retail investors sell a net 1 trillion won, shifting capital toward overseas funds[2].
Jan 27, 2026 – President Donald Trump announces plans to raise “reciprocal” and auto tariffs on South Korean goods to 25 % from 15 %, prompting a brief dip in the won to 1,446.2 per dollar but the market stays resilient[2].
Jan 27, 2026 – Semiconductor giants hit record highs, with Samsung Electronics up 4.87 % to 159,500 won and SK hynix soaring 8.7 % to an all‑time high of 800,000 won, leading the tech rally[2].
Jan 27, 2026 – Korean Treasury yields ease, with three‑year bonds falling to 3.094 % and five‑year to 3.377 % as investors seek safety[2].
Jan 30, 2026 – The KOSPI reaches a new record high of 5,224.3, after an intraday peak of 5,321.68, extending a four‑session winning streak[1].
Jan 30, 2026 – Trading volume spikes to 852 million shares worth 34.7 trillion won; individuals net‑buy 2.2 trillion won while foreigners sell 1.9 trillion won and institutions sell 425 billion won[1].
Jan 30, 2026 – AI‑related stocks continue to attract investors despite profitability concerns, with chipmakers supplying memory products staying in favor[1].
Jan 30, 2026 – Trump’s tariff threat again tempers optimism as he plans to raise “reciprocal” tariffs and auto duties back to 25 % this week, limiting the market’s advance[1].
Jan 30, 2026 – Samsung Electronics slips 0.12 % to 160,500 won, while SK hynix surges 5.57 % to a fresh high of 909,000 won; brokerage and telecom stocks also post gains[1].
Jan 30, 2026 – The Korean won weakens to 1,439.5 per U.S. dollar and bond yields rise, with three‑year Treasury yields climbing to 3.138 % and five‑year to 3.436 %[1].