Samsung Hits All-Time High as ₩1.78T Foreign Inflow Pushes KOSPI Above 4,100

While retail investors sold off ₩2.2 trillion, foreigners went on a nearly ₩1.8 trillion buying spree. This tug-of-war sent South Korea's benchmark KOSPI index surging past the 4,100 mark, powered by a massive rally in semiconductor stocks. Meanwhile, the Korean won gained significant ground against the U.S. dollar amid government efforts to stabilize the currency market.

Foreign Buying Fuels Market Rally

On Friday, the Korea Composite Stock Price Index (KOSPI) rose by 21.06 points, or 0.51 percent, to close at 4,129.68. Trading volume was heavy at 16 trillion won (US$11.1 billion), though losers outnumbered gainers 639 to 246.

The rally was driven by strong institutional demand. Foreign investors net-purchased 1.78 trillion won and institutions bought 388 billion won worth of shares, while retail investors offloaded 2.2 trillion won. The positive sentiment followed gains on Wall Street, where the Dow Jones and Nasdaq closed higher. A drop in the U.S. Volatility Index (VIX), or 'fear index,' to its lowest point this year also appeared to lift investor confidence.

A Tale of Two Sectors: Tech Soars, Others Stumble

"The KOSPI went up as the inflow of foreign capital increased amid eased concerns over an artificial intelligence bubble," said Lee Jae-won, an analyst at Shinhan Securities. He noted that foreign buying focused on semiconductor shares. Tech giant Samsung Electronics soared 5.31 percent to an all-time high of 117,000 won following reports it developed its own GPU for smartphones. Chipmaking rival SK hynix climbed 1.87 percent to 599,000 won.

In contrast, battery and internet stocks lost ground. LG Energy Solution fell 1.79 percent, while shipbuilding firms like HD Hyundai Heavy dropped 1.35 percent. Internet portal operator Naver and messenger app operator Kakao also declined by 2.11 percent and 2.84 percent, respectively.

Won Surges, Bond Yields Rise

In the foreign exchange market, the Korean won closed at 1,440.3 against the U.S. dollar, up sharply by 9.5 won from the previous session. The won's strength is attributed to news that the National Pension Service has resumed currency hedging, along with verbal intervention from FX authorities. Conversely, bond prices fell. The yield on three-year Treasurys gained 1.9 basis points to 2.958 percent, and the benchmark five-year bond yield rose 2.9 basis points to 3.240 percent.