Seoul, 15 Jan 2026, 16:00 KST
- KOSPI extends its winning streak to five sessions, driven by gains in autos and defence stocks
- Bank of Korea holds benchmark rate steady at 2.50%, hints at extended pause before any cuts
- Policymakers remain locked on currency fluctuations while the won clings to multi-year lows
South Korean stocks pushed to new highs Thursday as the KOSPI added 0.49% to reach about 4,746, marking a fifth consecutive gain. Auto and defense sectors powered the advance. https://www.tradingview.com/news/te_news%3A517140%3A0-korean-stocks-rise-on-sector-gains/
The gains come at a tricky time: global markets remain volatile, while Seoul’s policymakers scramble to stabilize a won that’s been falling toward a 16-year low. Investors were on alert for signs the Bank of Korea might step up efforts to curb the currency’s slide.
The central bank kept its benchmark interest rate steady at 2.50%, but removed wording that had suggested possible future cuts, a move seen by economists and traders as hawkish beyond the hold itself. Governor Rhee Chang-yong pointed to the foreign exchange market as “an important factor” behind the decision. https://www.reuters.com/world/asia-pacific/south-koreas-central-bank-holds-rates-safeguard-financial-stability-2026-01-15/
“Taking that out today was hawkish,” said Ahn Jae-kyun of Korea Investment Securities, noting that a rate cut within the next three months now seems off the table. Kang Seung-won at NH Investment Securities revised his outlook too, dropping his earlier forecast of a 25 basis-point cut in the second half of 2026 and expecting no change that year.
Hyundai Motor edged up 1.09% on the tape, with Kia pushing 2.24% higher. Shares of Hanwha Aerospace and Korea Aerospace Industries also moved up. HD Hyundai Heavy Industries added 3.09%, while Korea Zinc surged close to 6%, per Trading Economics data on TradingView.
In the region, Korea showed resilience amid broad tech weakness. Japan’s Nikkei dropped 0.9%, Hong Kong’s Hang Seng slid 0.5%, and Taiwan’s TAIEX declined 0.4%, according to Reuters. https://www.reuters.com/world/china/global-markets-wrapup-1-pix-2026-01-15/
The won stayed a headache. On Wednesday, Finance Minister Koo Yun-cheol flagged rising volatility even as current account surpluses hit record highs, blaming “one-sided trading” in the forex market. At the same event, Bank of Korea official Kwon Yong-o said the won’s value was out of sync with economic fundamentals. https://www.reuters.com/world/asia-pacific/south-korea-finance-minister-vows-swift-response-fx-volatility-2026-01-14/
Trade policy remains a sticking point for exporters. The U.S. Supreme Court handed down decisions on several cases Wednesday but held off on ruling the legality of President Donald Trump’s global tariffs, leaving the timeline uncertain. https://www.reuters.com/legal/government/supreme-court-set-issue-rulings-with-trump-tariffs-case-still-pending-2026-01-14/
The rally, however, isn’t without risks. A weaker won may boost exporters’ earnings on paper, but it also pushes up import costs, stoking inflation and forcing the central bank to maintain tighter policies than equity investors prefer. Fund outflows and volatile currency moves continue to be the concerns the Bank of Korea highlights.
Investors beyond Korea reacted to a slide in oil prices following Trump’s comments that killings linked to Iran’s protest crackdown seemed to be easing, dampening worries about wider conflict and supply issues. Brent and U.S. crude both plunged sharply in early Asian trading, Reuters reported. https://www.reuters.com/business/energy/us-oil-prices-dip-more-than-1-trump-remarks-reduce-fears-about-iran-2026-01-14/
At present, the domestic narrative is straightforward: funds continue pouring into heavyweight cyclicals despite a slowdown in global tech momentum, and the central bank has made clear it won’t rush back into cutting rates while the currency stays volatile.
