South Korean Stocks Open Higher Amid Government Decision on Capital Gains Tax

Strategic Insights -

South Korean stocks kicked off the new week with a positive note on Monday, driven by chip shares and a government decision to scrap plans to lower the capital gains tax threshold. The benchmark Korea Composite Stock Price Index (KOSPI) rose 13.6 points, or 0.4 percent, to 3,409.14 in the first 15 minutes of trading. The move marked the KOSPI's third consecutive day of reaching a new record high. Investors welcomed the news, with chip giant Samsung Electronics leading the charge, surging 2.12 percent. Foreigners also joined the buying spree, offsetting institutional and individual selling.

Key Takeaways:

  • The KOSPI rose 13.6 points, or 0.4 percent, to 3,409.14 in the first 15 minutes of trading, driven by chip shares and the government's decision to scrap plans to lower the capital gains tax threshold.
  • Samsung Electronics, SK hynix, and LG Energy Solution led the charge, with shares surging 2.12 percent, 1.83 percent, and 0.14 percent respectively.
  • Foreigners went on a net buying mode, mitigating selling pressure from institutional and individual investors.
  • The government's decision to keep the capital gains tax threshold at 5 billion won (US$3.6 million) was seen as a positive move, calming market nerves and boosting investor confidence.
  • Automakers, however, opened lower, with Hyundai Motor and Kia retreating 3.36 percent and 2.93 percent respectively.
  • The local currency, the won, was trading at 1,391.85 against the greenback, down 3.65 won from the previous session.

Statistics:

  • KOSPI rose 13.6 points to 3,409.14 in the first 15 minutes of trading.
  • Samsung Electronics surged 2.12 percent.
  • SK hynix advanced 1.83 percent.
  • LG Energy Solution edged up 0.14 percent.
  • Hyundai Motor dipped 3.36 percent.
  • Kia retreated 2.93 percent.
  • Defense giant Hanwha Aerospace dipped 0.5 percent.
  • Major bio company Samsung Biologics lost 0.58 percent.
  • Leading shipbuilder HD Hyundai Heavy sank 1.57 percent.
  • No. 1 financial firm KB Financial Group went down 0.34 percent.

Sources:

  • Yonhap News Agency, 15 Sep 2025