South Korean stocks climbed to a new record high Monday, extending gains for a tenth session amid a broad market rally. Investors welcomed the government’s decision to cancel a planned capital gains tax hike for equity holders. The benchmark Korea Composite Stock Price Index advanced 11.77 points, or 0.35 percent, finishing at 3,407.31. This result surpassed the previous all-time closing high of 3,395.54 set last Friday. Meanwhile, the Korean won slipped slightly against the US dollar during afternoon trading.
Trading volume remained moderate, totaling 374.97 million shares valued at 12.53 trillion won, or about 9.02 billion dollars. Advancing stocks outnumbered decliners, 482 to 397, signaling healthy investor sentiment. Foreign investors bought a net 266.89 billion won in shares, while retail and institutional investors took profits. Their combined sales reached 275.06 billion won, reflecting a cautious approach after recent gains. Nevertheless, steady foreign inflows provided strong support for the market rally.
The positive mood followed the government’s announcement that it would keep the capital gains tax threshold at five billion won. Officials had previously considered lowering the bar to one billion won, prompting concerns about potential damage to equity demand. By reversing that plan, policymakers reassured investors and encouraged further participation in domestic equities. Analysts noted that the adjustment could help maintain liquidity in the stock market. Consequently, expectations for sustained buying grew among both local and overseas participants.
Attention also turned to the US Federal Reserve’s upcoming rate-setting meeting later this week. Many investors anticipate a rate cut as America’s labor market shows signs of cooling. Market experts suggested that easing monetary policy abroad could strengthen appetite for risk assets in Asia. They argued that low foreign ownership of Korean stocks leaves room for additional overseas purchases. However, analysts cautioned about possible volatility after the recent sharp rise in share prices.
Major blue chips delivered mixed performances throughout the day. Samsung Electronics rose 1.46 percent to 76,500 won, while SK hynix gained 0.76 percent to 331,000 won. Samsung Biologics inched up 0.19 percent to 1,040,000 won, and LG Energy Solution stayed unchanged at 355,500 won. LG Chem jumped 1.21 percent to 293,500 won, but Hanwha Aerospace declined 1.6 percent to 986,000 won. KB Financial Group climbed 0.25 percent to 119,600 won, adding support to financial shares.
Automakers weighed on the index as Hyundai Motor fell 3.8 percent to 215,000 won. Kia retreated 3.97 percent to 101,700 won, continuing recent weakness in the sector. Doosan Enerbility dropped 3.61 percent to 58,800 won, while Posco Holdings closed flat at 285,000 won. HD Hyundai Heavy slipped 2.25 percent to 498,500 won, and Hanwha Ocean tumbled 3.27 percent to 109,500 won. Despite these declines, strong gains in technology and chemical shares helped sustain the overall market rally.
At 3:30 p.m., the local currency was quoted at 1,389.0 won per US dollar, down 0.8 won from the prior session. Currency traders noted cautious moves ahead of global monetary policy updates. They said that steady equity demand could provide partial support for the won. Observers expect continued resilience in the Korean market if policy stability and international trends remain favorable. For now, the extended market rally highlights investor confidence in both corporate earnings and government support.
