KOSPI Surges Past 9,000 Points for First Time, Driven by AI-Led Tech Rally

SEOUL, June 18 (Yonhap) -- South Korea's benchmark Korea Composite Stock Price Index (KOSPI) surged past 9,000 points for the first time ever Thursday, buoyed by a technology rally driven by artificial intelligence (AI) and led by Samsung Electronics Co. and SK hynix. So far this year, the index has soared more than 110 percent and set the new milestone as investors priced in optimism regarding the cessation of hostilities in the Middle East after the United States and Iran signed an interim peace deal.

According to the Korea Exchange, the KOSPI closed at 9,063.84, up 2.25 percent, or 199.6 points, from the previous session's close. It took just 22 trading sessions for the index to top the new milestone after breaking the 8,000-point mark for the first time on May 15. The latest historic feat comes as the KOSPI surpassed the 3,000 mark on June 20, 2025, and 4,000 points on Oct. 27, 2025. On Jan. 22, it hit 5,000 points in intraday trading, and touched 6,000 points on Feb. 25 and 7,000 points on May 6.

Fueled by the world-beating rally, the KOSPI's market capitalization has surpassed 7,300 trillion won (US$4.8 trillion). The meteoric jump for the KOSPI has been mainly led by Samsung Electronics and SK hynix, which have benefited from the global spending boom on AI data centers. Shares of Samsung Electronics, the world's largest maker of memory chips, have soared more than 180 percent so far this year, while SK hynix has skyrocketed about 280 percent. Samsung Electronics and SK hynix accounted for some 28 percent and 25 percent of the KOSPI's total market value, respectively.

Lee Kyung-min, an analyst at Daeshin Securities, expected the KOSPI to continue its record-setting run this year, helped by the AI-driven rally on semiconductor stocks. The bullish sentiment comes even after the U.S. Federal Reserve, in its first rate decision since new Chair Kevin Warsh took office, kept its benchmark interest rate steady but strongly hinted at a higher rate later this year. However, local retail investors' bet on the KOSPI's upward momentum to offset the Fed's hawkish stance. Retail investors have purchased a net 73.3 trillion won worth of stocks listed on the KOSPI market so far this year.

Adding to the latest gains, the U.S. unveiled the text of a signed memorandum of understanding aimed at ending the Iran war, which includes safe passage through the Strait of Hormuz with no charge for 60 days. Still, there have been concerns that sharp gains in the KOSPI were concentrated on a handful of heavyweight stocks, including Samsung Electronics and SK hynix. As of Thursday afternoon, the KOSPI 200 volatility index, or VKOSPI, stood at 78.74, down 1.14 percent from the previous session. The VKOSPI is the official Korean volatility index and serves as a "fear gauge," measuring the market's expected volatility over the next 30 days based on KOSPI 200 options. Typically, the VKOSPI moves in the opposite direction of the KOSPI.