Korean Shares Rally as KOSPI Closes Up Nearly 10%

TradingKey - South Korean equities staged a powerful rebound on Thursday. The benchmark KOSPI Index jumped 9.63% to close at 5,584.23, marking one of its biggest one‑day gains since the global financial crisis. The surge came after the index had tumbled over the previous two sessions amid turmoil in Iran and a sharp spike in oil prices.

Technology shares led the rally, climbing more than 12%, while the auto sector advanced over 10%. Trading volume expanded sharply as funds rotated back into heavyweight blue chips. Samsung Electronics soared 11.27% and SK Hynix gained 10.84%, emerging as the primary drivers behind the index’s rebound. Despite the recent volatility, the KOSPI remains up 32% so far this year.

Market analysts said Korean equities had suffered “oversold” conditions as the Iran conflict triggered a wave of global risk aversion. With geopolitical tensions showing no further escalation for now and oil prices stabilizing in the short term—together with no fundamental change in Korea’s macroeconomic outlook or corporate earnings expectations—investors rushed back into the market, fueling a sharp technical rebound. In the near term, the rally is viewed largely as a technical correction following panic‑driven selling earlier in the week.

D.K. Noh, an analyst at Shinhan Securities, noted that foreign investors—who had been net sellers of Korean stocks—appeared to shift their stance late Wednesday. Overseas funds turned net buyers in Thursday’s morning session, he said. Roh added that the recent trend of reduced exposure to emerging markets, including Korea, seems to be easing.