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Kospi soars to record high on optimism over trade deal with U.S.

Published: 16 Oct. 2025, 18:22 Updated: 16 Oct. 2025, 19:15

YOON SO-YEON
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A digital display at the Korea Exchange Yeouido office in western Seoul shows the Korean bourse Kospi hitting past the 3,740 mark on Oct. 16. [NEWS1]

Korean stocks hit a fresh all-time high Thursday, driven by rallies in technology and automobile shares, amid optimism over a possible trade deal with the United States.

The benchmark Korea Composite Stock Price Index (Kospi) jumped 91.09 points, or 2.49 percent, to close at 3,748.37, marking the first time it has climbed past the 3,700 mark. The Kospi had hit the 3,700 mark for the first time during intraday trading upon hopes of a positive outcome in ongoing tariff negotiations between Korea and the United States.

Thursday's trade volume was moderate at 487.77 million shares worth 17.37 trillion won ($12.2 billion). Gainers outnumbered decliners 492 to 387. Institutional and foreign investors were net buyers, purchasing 741.76 billion won and 652.76 billion won worth of shares, respectively, while retail investors offloaded a net 1.39 trillion won.

The Seoul stock market rose for the second straight day over U.S. Treasury Secretary Scott Bessent's positive remarks regarding the trade deal between Seoul and Washington, as well as optimism over AI investments, analysts said.

The United States is about to "finish up" trade negotiations with Korea, Bessent said Wednesday, as the two allies have been working to finalize details of Korea's $350 billion investment commitment. Bessent also suggested a 10-day window for a new deal, putting an end to months-long tariff-related uncertainties.

"His remarks that he sees no bubble in AI investment also gave a boost to technology stocks in both the United States and Korea," Lee Jae-won, an analyst at Shinhan Securities, said. Seoul's National Security Adviser Wi Sung-lac also voiced hope that Seoul and Washington could eventually reach a compromise in trade talks.

In Seoul, technology and auto stocks led the gains.

A Korea Exchange staff shows computer displaying Kospi and Kosdaq rising at the Yeouido office in western Seoul on Oct. 16. [NEWS1]

Market bellwether Samsung Electronics rose 2.84 percent to a record high of 97,700 won, while No. 2 chipmaker SK hynix jumped 7.1 percent to 452,500 won. Top carmaker Hyundai Motor surged 8.28 percent to 242,000 won, and its smaller affiliate Kia climbed 7.23 percent to 111,300 won on growing optimism over the Seoul-Washington tariff deal.

Among decliners, state-run Korea Gas Corp. lost 0.12 percent to 40,350 won, and leading budget carrier Jeju Air shed 0.81 percent to 6,150 won. Hanwha Aerospace Industries dropped 1.89 percent to 936,000 won, and Korea Aerospace Industries was down 1.3 percent to 98,700 won.

The Korean won had been quoted at 1,417.90 won against the U.S. dollar as of 3:30 p.m., down 3.4 won, or 0.24 percent, from the previous session's close of 1,421.3.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 4.9 basis points to 2.569 percent, and the return on the benchmark five-year government bonds climbed 4.4 basis points to 2.684 percent.

Securities firms forecast that the Kospi may climb even higher. Korea Investment & Securities raised its one-month upper-end projection for the index from 3,500 to 3,750.

“We reflected the government’s shareholder return policy and the U.S. Federal Reserve’s continued monetary easing stance,” said analyst Kim Dae-jun. However, he cautioned that renewed U.S.-China trade tensions and a weakening won against the dollar are headwinds. If the won-dollar exchange rate exceeds 1,500 won, he added, the bull market could reverse.

BY YOON SO-YEON, YONHAP [[email protected]]