South Korean Stocks Close Above 8,800 for First Time on AI Optimism

SEOUL, June 2 (Yonhap) -- South Korean stocks closed at a fresh high of above the landmark 8,800-point level Tuesday as tech shares continued to advance on optimism over artificial intelligence (AI), led by chip giant Samsung Electronics, offsetting a market-wide profit-taking mode. The local currency fell sharply against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 13.11 points, or 0.15 percent, to close at 8,801.49.

The index opened higher and climbed to a record intraday high of 8,933.62 before reversing course and falling nearly 3 percent at one point amid profit-taking. It later recouped part of its losses but ended the session slightly higher.

Trade volume was heavy at 626.03 million shares worth 67.5 trillion won (US$44.4 billion), with losers outnumbering winners 635 to 269.

Institutions and individuals bought a net 242.27 billion won and 6.34 trillion won, respectively, while foreigners sold a net 6.59 trillion won.

Investors remained cautious about developments in efforts to reach a peace agreement between the United States and Iran after three months of conflict, as continued uncertainty surrounding the Strait of Hormuz kept energy prices elevated.

Overnight, U.S. stocks finished higher, with major indexes reaching fresh record highs as a rally in technology shares lifted market sentiment.

U.S. chip giant Nvidia surged more than 6 percent after Chief Executive Officer Jensen Huang unveiled a new AI processor designed to run local agentic AI applications on personal computers.

"The local stock market experienced heightened volatility as investors locked in profits following the recent sharp rally," Lee Kyung-min, an analyst at Daishin Securities, said. "Continued foreign selling weighed on share prices, particularly among stocks that had posted strong gains in recent weeks."

Large-cap shares were mixed.

Market bellwether Samsung Electronics rose 3.3 percent to a fresh record high of 360,500 won, while its rival chipmaker SK hynix edged down 0.13 percent to 1,360,000 won.

Top automaker Hyundai Motor shed 2.8 percent to 729,000 won, and electronic components maker Samsung Electro-Mechanics plunged 9.58 percent to 813,000 won.

Shares of companies linked to Nvidia CEO Jensen Huang advanced on expectations that their top executives could meet Huang during his visit to South Korea ]later this week to discuss potential AI partnerships.

Internet portal operator Naver increased 3.31 percent to 280,500 won, and Doosan Robotics jumped 20.45 percent to 166,700 won.

Samsung Life Insurance surged 17.07 percent to 480,000 won after the Bank of Korea signaled the possibility of an interest rate hike amid mounting inflationary pressure.

Hanwha Aerospace retreated 5.98 percent to 1,070,000 won after the defense company was ordered to suspend operations at its Daejeon factory following a deadly explosion Monday.

The Korean won was quoted at 1,517.3 won against the U.S. dollar at 3:30 p.m., down 13 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.7 basis points to 3.773 percent, while the return on the benchmark five-year government bonds lost 2.7 basis points to 3.969 percent.