South Korea’s benchmark KOSPI index closed the last trading week of June on a strong note, rising to 3,055.94 on June 27, its highest level since 2021, driven by a tech rally, easing geopolitical tensions and robust foreign inflows.
The index had dipped to 2,992.2 on June 23 amid profit-taking and global uncertainty, but rebounded sharply over the following days. A ceasefire between Israel and Iran helped restore investor confidence across Asia, triggering a risk-on rally led by chipmakers.
SK hynix soared nearly 9%, while Samsung Electronics climbed more than 4%, as optimism returned to tech-heavy markets. Continued buying by foreign institutional investors also provided a significant boost, pushing the index back above the key 3,000-point level.
“This is the strongest first-half performance for KOSPI since 1999, with gains of over 27% year-to-date,” noted a Seoul-based equity strategist.
Despite the impressive rally, analysts warn of a potential short-term correction due to overbought technical conditions. Still, the broader sentiment remains bullish, with markets buoyed by expectations of stable US interest rates and strong global tech earnings.
Looking ahead, traders will closely watch upcoming macroeconomic data and corporate results, particularly from the US and China, for further cues. Analysts expect the KOSPI to consolidate within the 3,000-3,100 range in the near term.
