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Kospi closes at record 5,221.25 points as strong corporate earnings raise optimism

Published: 29 Jan. 2026, 17:48

JIN MIN-JI
[email protected]

Electronic display boards show the performances of Korea's financial markets in a dealing room at Woori Bank in central Seoul on Thursday. [NEWS1]

Korean stocks closed at a record high on Thursday, continuing their winning streak to a third session as strong corporate earnings raised investor optimism.

The Kospi closed at 5,221.25 points, up 0.98 percent from the previous trading session, with a heavy trading volume of 689.9 million shares worth 35.4 trillion won (US$24.8 billion), led largely by retail investors.

After opening higher, the Kospi briefly lost ground in the morning as investors locked in profits in major tech firms, such as Samsung Electronics and SK hynix, following their record-breaking fourth quarter earnings.

But the index soon reversed, backed by strong buying pressure from retail investors, who net purchased 1.6 trillion won. Institutional and foreign investors, on the other hand, were net sellers, offloading 1.5 trillion won and 150.2 billion won, respectively.

"We are seeing a sectoral rotation, with investors turning their eyes from major chipmakers to the nonsemiconductor sector and then to the smaller Kosdaq market," Lee Kyoung-min, an analyst at Daishin Securities, said.

The smaller Kosdaq index has surged over 20 percent since Dec. 30 of last year, as investors turned to the secondary market to hunt for bargains. The government has vowed to support startups and early-stage businesses, while encouraging public funds to actively invest in the Kosdaq market.

Meanwhile, uncertainties surrounding the U.S. Federal Reserve's policy direction were also eased, Lee added, with the Fed delivering the widely expected decision to keep the U.S. benchmark rate steady.

The Fed’s statement removed a clause suggesting that the committee viewed a weakening labor market as a greater risk than rising inflation, increasing the likelihood of a pause in rate cuts in the near term. On the same day, the S&P 500 topped 7,000 points for the first time as optimism over AI continues, though the benchmark slipped back to little changed.

In Seoul, most large-cap shares closed higher. Chip giant Samsung Electronics inched down 1.05 percent to 160,700 won, while its rival SK hynix added 2.38 percent to a historic high of 861,000 won.

Automotive leader Hyundai Motor jumped 7.21 percent to 528,000 won, portal operator Naver closed up 3.42 percent to 287,000 won and battery maker LG Energy Solution retreated 3.36 percent to 416,500 won.

Brokerages gathered ground, benefiting from the stock market's bull run.

Mirae Asset Securities vaulted 17.39 percent to 40,850 won and Korea Investment Holdings added 9.38 percent to 221,500 won.

The Korean won weakened by 0.27 percent to trade at 1,426.3 won against the dollar as of 3:30 p.m.

BY JIN MIN-JI, YONHAP [[email protected]]