South Korea’s financial markets started the day on a strong note as the Kospi surged past 2,770. The Kospi rally reflects growing confidence in Lee Jae-myung’s presidency, which removed months of uncertainty. Investors responded swiftly to the election outcome, pushing the index to a new yearly high. The Kospi opened at 2,737.92 and peaked at 2,771.03 during intraday trading. This marked its strongest performance since August 2024.
Trading remained bullish throughout the day, ending at 2,770.84 with a gain of 2.66 percent. The sharp rise followed a public holiday on Tuesday for the presidential election. Foreign investors led the charge, purchasing shares worth 1.05 trillion won. Institutional investors followed closely with 204 billion won in net purchases. However, retail investors booked profits, selling stocks worth 1.22 trillion won. Market heavyweights saw strong gains amid the momentum shift. Samsung Electronics closed at 57,800 won, climbing 1.76 percent. Meanwhile, SK hynix soared by 4.82 percent, ending at 217,500 won. KB Financial also surged, rising 7.9 percent as investors welcomed the leadership transition. The Kosdaq index followed suit, gaining 1.34 percent to close at 750.21.
Despite expectations, the Korean won remained steady against the dollar. Early gains were neutralized by the US dollar’s rebound after strong US jobs data. The won opened at 1,375.9 per dollar and ended the session at 1,367.64. Analysts suggested that political stability had already been factored into currency forecasts. According to Kiwoom Securities analyst Han Ji-young, the Kospi rally reflects growing confidence in policy changes. She noted that investors are now watching for reforms in the Commercial Act and changes to treasury share policies. These efforts could push the Kospi closer to the 5,000-point milestone.
Economist Lee Joo-woon at Daishin Securities said the real economic impact lies ahead. Though the impeachment of Yoon Suk Yeol resolved much of the prior instability, stalled reforms must now resume. As Lee Jae-myung begins his term, markets anticipate fresh momentum on delayed economic plans. Indeed, the Kospi rally reflects growing confidence that political clarity will unlock growth potential. While challenges remain, the shift in sentiment marks a hopeful turning point for South Korea’s financial future.
