South Korea’s KOSPI Hits Record 5,803.53 as Politics, AI Chip Rally Drive Market Surge
Updated (67 articles)
Record‑breaking Index Closes at 5,803.53 Amid Broad Investor Optimism The Korea Composite Stock Price Index closed at an all‑time high of 5,803.53 on Feb 20, 2026, up 2.31 % and 131.28 points, reflecting strong demand after the Lunar New Year break and expectations of pro‑business policies [1][2]. Institutional investors net‑bought roughly 1.6 trillion won of shares, while foreign and retail investors recorded net sales of 745 billion won and 986 billion won respectively [2]. The rally persisted despite a weakening won, which slipped to about 1,447 per dollar, and a dip in U.S. markets linked to heightened geopolitical tension [2][3].
Chip, Defense and Auto Sectors Lead Gains While Some Tech Shares Pull Back Semiconductor giants drove the surge, with Samsung Electronics edging up 0.05 % and SK Hynix jumping 6.15 % in one report, while defense player Hanwha Aerospace rose over 8 % [2]. Automakers showed mixed results: Hyundai Motor fell modestly, Kia gained 1.06 %, and other large‑cap tech stocks posted modest moves [2][3]. The AI‑related chip rally, highlighted in earlier sessions, continued to lift broader market sentiment, supporting the record close [5][6].
Political Turbulence Intensifies: Yoon’s Life Sentence, Kim’s Resignation, Lee’s R&D Push Former President Yoon Suk‑yeol received a life‑imprisonment sentence for a 2024 martial‑law attempt on Feb 19 and issued a public apology the following day [1][4]. Presidential spokesperson Kim Nam‑joon resigned on Feb 20 to contest a local election in Incheon Gyeyang‑B district [1]. President Lee Jae‑myung pledged expanded R&D support for scientists and engineers at a KAIST commencement ceremony and called for stricter penalties on price‑collusion schemes [1][4].
AI Optimism and Post‑Holiday Momentum Bolster Market Outlook Analysts attribute the rally to pent‑up demand after the three‑day Lunar New Year holiday and confidence in AI‑driven chip growth, with trading volume reaching 1.73 billion shares worth roughly $22.6 billion [2]. Despite U.S. market weakness and rising U.S.–Iran tensions, Korean investors remained bullish, anticipating further corporate measures to enhance shareholder returns [2][3]. The won’s depreciation and falling Korean bond yields signaled lower borrowing costs, reinforcing the positive sentiment [2][6].
Sources
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1.
Yonhap: South Korea sees record KOSPI high, political resignations and R&D pledge amid post‑crisis shifts – Details the Feb 20 record index, Yoon’s apology, Kim’s resignation, and Lee’s R&D commitment .
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2.
Yonhap: South Korean KOSPI Hits Record 5,803.53 Amid Investor Optimism – Provides the closing figure, institutional buying data, sector performance, and won/ bond movements .
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3.
Yonhap: South Korean KOSPI Opens Above 5,700 Amid Global Uncertainty – Describes the early‑day surge, mixed large‑cap results, and won weakening amid U.S. market declines .
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4.
Yonhap: South Korea sees Yoon life sentence, record stock high, anti‑collusion push, and Naver Pay recovery – Covers Yoon’s life sentence, KOSPI record, Lee’s anti‑collusion stance, and Naver Pay outage resolution .
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5.
Yonhap: South Korean Stocks Break 5,600 Mark on AI‑Driven Chip Rally – Highlights AI‑chip driven rally, trading volume, sector winners, and analyst outlook .
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Yonhap: Korean market opens at record high, KOSPI tops 5,600 – Reports the opening breakthrough, domestic investor net buying, AI optimism, and won’s weakness .
Timeline
Nov 2025 – Foreign investors sell a record 14.4 trillion won on the KOSPI, bringing year‑to‑date net foreign outflows to 8.8 trillion won, while Korean retail investors buy 9.2 trillion won, the third‑largest monthly net purchase on record [30].
Dec 3, 2025 – Former first lady Kim Hye‑jeong faces a 15‑year prison sentence, Q3 GDP rises 1.3 % (the strongest in 45 months), and Samsung announces mass production of HBM4 chips for AI and high‑performance computing [29].
Dec 8, 2025 – The KOSPI climbs 1.34 % to 4,154.85 ahead of a Fed meeting, foreign investors net‑buy 321.3 billion won, LG Energy Solution jumps 5.99 % on a Mercedes‑Benz supply deal, and bond yields shift as traders price in a possible U.S. rate cut [28].
Dec 14, 2025 – The KOSPI opens 2.09 % lower at 4,080.01 as renewed AI‑bubble worries hit Samsung and SK Hynix; U.S. markets fall on a Broadcom margin outlook, and President Trump weighs former Fed governor Kevin Warsh for the chair [27].
Dec 15, 2025 – The KOSPI drops 1.84 % to 4,090.59 amid AI profitability concerns, with Samsung down 3.76 % and SK Hynix 2.98 %; the won strengthens to 1,471 per $ [26].
Dec 30, 2025 – South Korea dismantles the 78‑year‑old State Prosecutors’ Office, Lee Jae Myung assumes the presidency, and the KOSPI breaches 4,000 as a $518 bn AI‑chip strategy fuels optimism [24].
Dec 30, 2025 – President Lee schedules a Jan 4‑7 state visit to China to meet Xi Jinping, a parliamentary hearing grills Coupang over a massive data breach, and the KOSPI ends 2025 up 75.7 % – the strongest annual gain since the dot‑com era [25].
Jan 2, 2026 – The KOSPI opens higher, up 0.59 % to 4,238.83, driven by Samsung and SK Hynix gains, while retail investors offset foreign selling [23].
Jan 2, 2026 – The KOSPI closes at an all‑time high of 4,309.63, up 2.27 %, as chip mega‑caps hit record highs and 2025 exports reach a record $709.7 bn [22].
Jan 6, 2026 – The KOSPI tops 4,500 for the first time, closing at 4,525.48 on semiconductor, brokerage and shipbuilder strength; the mother of a late Coupang worker testifies, a joint probe into church‑politician bribery launches, and First Lady Kim visits a Korean school in Beijing [21].
Jan 7, 2026 – Authorities uncover a hacker group selling data from 21 organizations; President Lee asks Xi to mediate on North Korean nuclear issues; the KOSPI hits a fresh record high of 4,551.06; South Korea imports 2.24 m U.S. eggs and records a $36.05 bn FDI inflow for 2025 [20].
Jan 8, 2026 – The KOSPI extends a five‑session rally to a record 4,552.37, led by shipbuilding and defense stocks despite mixed large‑cap earnings [19].
Jan 16, 2026 – The KOSPI opens above 4,800 for the first time at 4,807.36; former President Yoon Suk Yeol receives a five‑year prison term for obstruction tied to his 2024 martial‑law attempt; a Seoul bus crash injures 13 people; a new vice‑ministerial channel on North‑Korea policy launches; a fire displaces about 200 Guryong‑village residents [18][17].
Jan 19, 2026 – The KOSPI closes at a record 4,904.66 (first above 4,900) after an intraday high of 4,917.37, extending a 12‑day winning streak; BTS applies to stage a comeback show in central Seoul; a budget‑minister nominee faces a parliamentary clash; President Lee calls for harsher penalties on price‑collusion schemes [14][15][16].
Jan 27, 2026 – President Trump announces U.S. tariffs on South Korean autos, lumber and pharmaceuticals will rise to 25 %, sending the KOSPI down 0.84 % to 4,908.20; Hyundai and Kia tumble while utilities rise [13].
Jan 28, 2026 – President Trump pledges to “work something out” on a trade deal with South Korea, calming tariff fears; the KOSPI jumps 1.65 % to 5,168.72 in opening minutes; Samsung and SK Hynix lead gains ahead of earnings, and Hanwha Aerospace adds on a $1.9 bn rocket contract with Norway [12].
Jan 30, 2026 – The KOSPI hits a new record high of 5,224.3, extending a four‑session winning streak; AI‑related stocks attract heavy buying despite U.S. tariff threats; Samsung slips slightly while SK Hynix surges 5.57 %; the won weakens to 1,439.5 per $ [10].
Feb 2, 2026 – The KOSPI slides 1.05 % to 5,169.36 in early trade as the Fed chair nomination of Kevin Warsh fuels market jitters; Samsung and SK Hynix fall, Hanwha Aerospace gains, and the won weakens to 1,449.5 per $ [9].
Feb 3, 2026 – The KOSPI jumps 4.68 % to 5,181.41 after a five‑minute buy‑side circuit breaker, with Samsung up 6.58 % and SK Hynix 7.83 %; the won strengthens to 1,448.8 per $ [8].
Feb 3, 2026 – The KOSPI surges 6.84 % to 5,288.08, the biggest daily gain in six years, prompting a “sidecar” buying halt; JP Morgan lifts its year‑end target to 6,000‑7,500; foreign and institutional investors net‑buy while retail sells [7].
Feb 4, 2026 – The KOSPI climbs 0.23 % to 5,300.37 in early trade despite U.S. market weakness on AI software worries; Samsung and SK Hynix dip, while Hyundai Motor, LG Energy Solution and Celltrion post gains; the won trades at 1,453 per $ [6].
Feb 19, 2026 – A Seoul court sentences ex‑President Yoon Suk Yeol to life imprisonment for leading a 2024 insurrection; the KOSPI reaches an all‑time high of 5,677.25 on semiconductor and AI optimism; President Lee urges tougher penalties for price‑collusion; Naver Pay fully restores service after a midday outage [4][5].
Feb 20, 2026 – The KOSPI closes at a record 5,803.53, up 2.31 %, as institutional investors net‑buy 1.61 trillion won and post‑Lunar New Year demand fuels the rally; chip and defense stocks lead gains while the won slips to 1,446.65 per $ and bond yields fall; former President Yoon apologizes for his 2024 martial‑law decree; spokesperson Kim Nam‑joon resigns to contest the June local elections; President Lee pledges stronger R&D support at a KAIST commencement [1][2][3].
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