News is good and Kospi gains 1.42%
The benchmark Kospi jumped 30.27 points to close at 2,161.51. Trading volume was heavy at 895 million shares worth 12.7 trillion won ($10.6 billion), with gainers outpacing losers 518 to 319.
Institutions scooped up a net 118.2 billion won. Foreigners and individuals offloaded a net 155.9 billion won and 9.5 billion won, respectively.
The index opened higher, tracking an overnight Wall Street rally, and it continued to build gains on the back of a rise in tech and bio shares.
Earlier in the day, North Korea suspended "military action plans" against South Korea during a Central Military Commission meeting presided over by leader Kim Jong-un.
"The Kospi continues to maintain its upturn as various economic data showed improvement, followed by the North Korean risk being relieved," Choi Yoo-june, an analyst at Shinhan Financial Investment, said.
In Seoul, most large-cap shares closed higher.
Tech shares were bullish, with Samsung Electronics gaining 2.92 percent to 52,900 won. SK hynix added 2.26 percent to 86,000 won to snap a four-day losing streak.
Bio stocks ended higher, with Samsung BioLogics going up 2.12 percent to 819,000 won after the biopharmaceutical affiliate of Samsung Group said it had clinched a 381 billion-won order to manufacture the products for a European firm.
Celltrion continues its winning streak for four consecutive trading days inching up 0.16 percent to reach 319,000 won.
Automaker Hyundai Motor moved up 4.36 percent to 103,000 won, and Kia Motors gained 4.65 percent to 33,750 won. Auto parts maker Hyundai Mobis shot up 6.22 percent to 205,000 won on news that the company developed core 5G-based connected car technology.
The secondary Kosdaq added 6.27 basis points closing at 759.5.
The local currency closed at 1,199.4 won against the dollar, down 9.4 won from the previous session's close.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year bonds lost 1.0 basis points to 0.818 percent, while the return on the benchmark ten-year government bond added 1.3 basis points to reach 0.71 percent.
BY CHEA SARAH, YONHAP [firstname.lastname@example.org]