South Korean Stocks Reach New All-Time High Amid Trade Deal Hopes

Strategic Insights -

South Korean stocks reached a fresh all-time high on Thursday, driven by rallies in technology and automobile shares, as investors remained optimistic about a possible trade deal with the United States. The Korean won rose against the U.S. dollar, and institutional and foreign investors were net buyers, while retail investors offloaded shares. Analysts attributed the market's gain to positive remarks from U.S. Treasury Secretary Scott Bessent regarding the trade deal and optimism over artificial intelligence investments.

Key Takeaways:

  • The Korea Composite Stock Price Index (KOSPI) jumped 91.09 points, or 2.49 percent, to close at 3,748.37, marking the first time it has climbed past the 3,700 mark.
  • Trade volume was moderate at 487.77 million shares worth 17.37 trillion won (US$12.2 billion).
  • Gainers outnumbered decliners 492 to 387.
  • Institutional and foreign investors purchased a net 741.76 billion won and 652.76 billion won worth of shares, respectively, while retail investors offloaded a net 1.39 trillion won.
  • The Seoul stock market rose for the second straight day over hopes of a trade deal between Seoul and Washington.
  • Technology and auto stocks led the gains, with market bellwether Samsung Electronics rising 2.84 percent to a record high of 97,700 won, and No. 2 chipmaker SK hynix jumping 7.1 percent to 452,500 won.
  • Hyundai Motor and Kia also surged, with Hyundai rising 8.28 percent to 242,000 won and Kia climbing 7.23 percent to 111,300 won.

Statistics:

  • The Korean won rose 3.4 won against the U.S. dollar, closing at 1,417.90 won.
  • Institutional and foreign investors purchased a combined 1.395 trillion won worth of shares.
  • Retail investors offloaded a net 1.39 trillion won.
  • The KOSPI has climbed 2.49 percent, marking its first time above 3,700.
  • Bond prices closed lower, with the yield on three-year Treasurys rising 4.9 basis points to 2.569 percent.

Sources:

  • Yonhap News Agency (October 16, 2025)
  • Shinhan Securities Co., analyst Lee Jae-won (as cited by Yonhap News Agency, October 16, 2025)
  • U.S. Treasury Secretary Scott Bessent's statement (U.S. time, October 15, 2025, as cited by Yonhap News Agency, October 16, 2025)