Seoul stocks land at new high on chip rally

South Korean stocks extended their winning streak for the fifth consecutive session Wednesday on semiconductors to land at a new high, while investors remained cautious of the U.S. Federal Reserve's rate-setting meeting later this week.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 137.64 points, or 1.58 percent, to 8,864.24, inching closer to the 9,000-point mark.

After opening lower, the index entered positive territory in the afternoon, boosted by buying pressure from retail and institutional investors.

The two groups net purchased a combined 1.1 trillion won (US$727.3 million). Foreign investors dumped a net 992.3 billion won.

"Risk-on sentiment following the peace agreement between U.S. and Iran is coexisting with a wait-and-see stance ahead of the Federal Open Market Committee meeting," said Lee Kyoung-min, an analyst from Daishin Securities.

Market watchers widely expect the new Fed chair, Kevin Warsh, to make an on-hold decision in the policy meeting Wednesday (local time), Lee said, as a decline in oil prices following the peace deal has eased inflationary pressures.

The new state-run company tasked with implementing Seoul's US$350 billion investment pledge to the United States is also scheduled to set sail on Thursday. This could provide an extra boost to shipbuilding, chips and nuclear power plant sectors, the analyst added.

Trade volume was moderate at 565.1 million shares, worth 34.8 trillion won. Losers outnumbered winners 525 to 347.

Market heavyweights closed mixed, with semiconductors gaining ground.

Samsung Electronics rose 1.02 percent to 346,500 won. Its industry rival SK hynix advanced 5.84 percent to 2,521,000 won, setting a new record.

The shipbuilding sector also closed up, amid anticipations for the new South Korea-U.S. investment firm to launch later this week.

Hanwha Ocean climbed 3.02 percent to 133,100 won, and HD Hyundai Heavy Industries rose 1.29 percent to 707,000 won.

On the other hand, top carmaker Hyundai Motor shed 3.44 percent to 618,000 won, and major financial company KB Financial backtracked 4.65 percent to 164,000 won.

The Korean won was quoted at 1,513.4 won against the U.S. dollar as of 3:30 p.m., down 1.8 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.7 basis point to 3.710 percent, and the return on the benchmark five-year government bonds shed 0.8 basis point to 3.897 percent.

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This story was originally published June 17, 2026 at 5:19 AM.