The KOSPI broke through 2,750 on Thursday, powered by a synchronized rally in the country’s two largest chipmakers. Buying pressure built from the opening bell, pushing the index as high as 2,760 intraday before it pared some gains into the close — still enough to mark a fresh year-to-date high.
Samsung Electronics and SK Hynix did most of the heavy lifting, each surging roughly 5% and accounting for more than half of the index’s gain. The catalyst: demand for AI-server HBM chips coming in above what the market had priced in.
Foreign and Institutional Buying Aligns for the First Time in Weeks
Foreign investors bought a net ₩1.2 trillion of shares on the main board, while institutions added ₩400 billion — the first time both groups have been net buyers on the same day since mid-last month. Retail investors, by contrast, took profits, selling a net ₩1.5 trillion.
“What’s driving this rally isn’t a re-rating of multiples — it’s that the earnings estimates themselves are moving. That’s a different kind of rally than what we saw before.” — Head of equities, a domestic asset manager
Analysts largely attribute the move to upward earnings revisions rather than a simple flow event. Several major brokerages raised price targets on both Samsung Electronics and SK Hynix this week alone.
Valuation Remains the Key Risk
Some strategists are urging caution against short-term overheating. The sector’s forward price-to-earnings ratio already sits above its five-year average, meaning further gains will need to be backed by confirmed earnings — not just forecasts.
“The direction is constructive, but the pace has been fast, and volatility could rise alongside it,” said one research head, adding that the coming earnings season would likely separate the winners from the rest.
The next catalyst investors are watching is Samsung Electronics’ preliminary earnings release next week. A beat against consensus, most strategists say, would likely extend the rally.
Ji-won Park
Senior Markets Correspondent · Domestic Equities
