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Kospi up more than 3% on hopes for dividend tax reform, end of U.S. shutdown

Published: 10 Nov. 2025, 17:16

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 4,073.24 points on Nov. 10, up 119.48 points, or 3.02 percent, from the previous trading session. [YONHAP]

Shares shot up more than 3 percent Monday as investor sentiment was boosted by the government's proposed dividend tax reform, along with signs of an end to the longest government shutdown in the United States' history. The won strengthened against the dollar.

The benchmark Kospi added 119.48 points, or 3.02 percent, to close at 4,073.24.

Trade volume was moderate at 334 million shares worth 16.5 trillion won ($11.3 billion), with gainers far outpacing losers 804 to 98.

Foreigners sold a net 155 billion won worth of local shares, and individuals offloaded a net 1.16 trillion won. Institutions bought a net 1.3 trillion won.

Investors scooped up bargains after the market tumbled last week amid concerns over a bubble in the AI industry.

They also expressed hopes for the government's proposed dividend tax reform aimed at encouraging dividend payouts by listed companies and boosting the stock market.

An earlier report said the government and the ruling party agreed Sunday to push for lowering the top tax rate on dividends from the initially proposed 35 percent.

"Brokerage houses, insurance companies and holding firms led the overall growth amid growing hopes for expanded shareholder returns," Seo Sang-young, an analyst at Mirae Asset Securities, said.

In addition, news reports showed that the lingering U.S. federal government shutdown may come to an end soon, as some Democratic lawmakers agreed to support its reopening.

Financial companies closed mostly bullish, with KB Financial rising 4.28 percent to 129,000 won and Shinhan Financial advancing 1.81 percent to 78,800 won.

SK Square, an investment arm of SK Group that holds a 20 percent stake in SK hynix, shot up 3.94 percent to 290,000 won.

Top-cap tech giant Samsung Electronics moved up 2.76 percent to 100,600 won, and SK hynix jumped 4.48 percent to 606,000 won.

The exchange rate was quoted at 1,451.4 won against the greenback at 3:30 p.m., down 0.38 percent from the previous session's quote of 1,456.9 won.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 2.9 basis points to 2.865 percent, and the return on the benchmark five-year government bonds shed 0.8 basis point to 3.035 percent.

Yonhap