NEW YORK, January 4, 2026, 08:51 ET — Market closed
South Korean shares on the Korea Exchange ended Friday at fresh highs, with the benchmark KOSPI jumping 95.46 points, or 2.27%, to a record 4,309.63. The tech-heavy KOSDAQ rose 2.17%, while the won was last quoted at 1,441.8 per dollar near the close.
The surge was powered by heavyweight chip names after Samsung Electronics’ co-CEO and chip chief Jun Young-hyun said customers had praised the competitiveness of its next-generation HBM4 chips, adding that “Samsung is back.” Samsung shares rose 7.2% and SK Hynix gained 4%, both hitting record highs, as investors focused on AI memory demand and Samsung’s push to catch up with rivals including SK Hynix and Micron. Reuters
The broader tone was also supported by signs the export engine is regaining traction. South Korea’s December manufacturing PMI — a survey-based gauge where readings above 50 indicate expansion — rose to 50.1 after two months at 49.4, helped by a rebound in export orders, according to S&P Global data.
Currency moves remain a near-term swing factor for foreign flows into Korean equities. Bank of Korea Governor Rhee Chang-yong said the dollar-won rate in the high-1,400s did not reflect economic fundamentals, even as the interest-rate gap between South Korea and the United States widened and demand for dollars rose among investors.
Friday’s Korea rally came against a mixed start to the new year in global markets, with U.S. stocks ending uneven and Treasury yields edging higher, underpinning the dollar. That backdrop matters for Seoul because a firmer dollar can pressure the won even as it boosts exporters’ overseas earnings when revenues are translated back into won.
Geopolitics is another live input into risk appetite. South Korean President Lee Jae Myung began a state visit to China on Sunday, hours after North Korea launched ballistic missiles, and the delegation includes senior business leaders from groups such as Samsung, SK and Hyundai, according to Chinese state media cited by Reuters.
Technicians say the KOSPI’s momentum is getting stretched. Investing.com’s indicators showed the index’s 14-day RSI — the relative strength index, a momentum gauge used to flag “overbought” markets — above 84 after Friday’s jump. Investing
That combination of record highs and frothy momentum leaves the market sensitive to the next shift in rates, FX and chip headlines. Any disappointment on AI-linked orders or pricing would likely hit the same large-cap names that have carried the index.
Before the next session in Seoul on Monday, traders will watch whether the KOSPI can hold above 4,300 — a level that often becomes psychological support after a breakout. Dollar-won moves may set the tone for offshore buying at the open.
U.S. data is the next major macro test, with ISM manufacturing due on Monday and ISM services on Wednesday. The U.S. Labor Department’s employment report for December is scheduled for Friday, a release that can move global bond yields and the dollar — and by extension Asian currencies and risk appetite.
Investors are also lining up Korea’s earnings catalyst. SK Hynix is expected to report on Jan. 22 and Samsung Electronics later in the month, according to Investing.com earnings calendars, with guidance on AI memory shipments and pricing likely to be the key swing for the chip-led rally.
