South Korea’s Kospi hit a fresh record high, extending its rally for an eighth straight session. Strong performances in technology, defense, and renewable energy fueled the surge. Investor optimism also rose after President Lee Jae Myung signaled a softer approach to capital gains tax.
The Kospi closed at 3,344.2, up 29.67 points or 0.9 percent. This figure surpassed the previous high, set just one session earlier. Market momentum stayed strong with moderate trade volume of 430.3 million shares worth 14.7 trillion won. Advancers slightly outpaced decliners, showing healthy market breadth.
Foreign investors purchased 300 billion won in local shares, while institutions bought 812.3 billion won. In contrast, retail investors sold 1.1 trillion won to secure profits. These shifts highlighted the strong role of institutions and foreigners in driving Kospi growth.
Global factors also lifted sentiment. Wall Street gains in AI-related stocks such as Nvidia, AMD, and Broadcom added momentum. Additionally, a drop in US producer prices boosted hopes for a Federal Reserve rate cut. Investors now await the upcoming US consumer price index for more direction on Fed policy.
President Lee Jae Myung’s press conference gave domestic investors further confidence. He stated no urgent need exists to lower the capital gains tax threshold, which eased market concerns. His comments about fostering stronger capital markets reassured investors and supported the Kospi rally.
Technology stocks led the charge. Samsung Electronics rose 1.1 percent to 73,400 won, and SK hynix climbed 0.9 percent to 307,000 won. Battery leader LG Energy Solution jumped 2.76 percent to 350,000 won. Defense shares also surged, with Hanwha Aerospace soaring nearly 4 percent past 1 million won.
Shipbuilders showed strength as well. HD Hyundai Heavy advanced 2.58 percent, Hanwha Ocean gained 1.72 percent, and HD Korea Shipbuilding rose 2.05 percent. Hyundai Motor, the top automaker, climbed 1.13 percent to 223,000 won.
Renewable energy firms delivered standout gains. SK Oceanplant skyrocketed over 22 percent to 29,100 won, and Doosan Fuel Cell surged nearly 16 percent. Food companies also rallied thanks to the global boom in Korean culture. Nongshim soared over 19 percent, and Samyang Foods rose more than 5 percent.
However, energy lagged behind. Doosan Enerbility slid 2.56 percent, while Korea Electric Power dropped nearly 3 percent. These declines reflected weaker sentiment for nuclear power. Meanwhile, the Korean won weakened slightly against the US dollar, trading at 1,391.8 won.
The latest rally highlights how global trends, domestic policies, and sector strength continue to fuel Kospi growth.
