South Korean stocks rebounded sharply on Wednesday, driven by easing concerns over spending in the artificial intelligence sector. The Korea Composite Stock Price Index (KOSPI) surged 3.29%, closing at 5,735.66, as semiconductor shares saw significant gains. This recovery follows a period of sharp losses in the previous session.
The rally in the stock market was accompanied by a temporary suspension of program buying on the Korea Exchange, triggered when KOSPI 200 futures rose more than 5%. This marked the first such suspension in two months, underscoring the market’s swift rise.
Investor sentiment was bolstered by strong earnings reports from US-based AI server manufacturer Super Micro Computer, which helped ease fears about the financial burden of investing in AI infrastructure. This optimism extended to major South Korean technology firms, notably Samsung Electronics and SK hynix. Samsung Electronics saw a 5.67% increase in its share price, reaching 223,500 won, while SK hynix rose 5.81% to 1.29 million won.
Other significant movers included SK Group’s holding company, SK Corp., which surged 12.62% to 482,000 won, rebounding from previous declines. LS Electric also experienced a boost, climbing 7.02% to 166,100 won following better-than-expected third-quarter earnings linked to rising demand for power equipment in AI data centers.
Despite the broad recovery, not all companies fared well. Defense firm LIG D&A saw its shares plunge 9.03% to 498,500 won after South Korea’s arms procurement agency barred it from defense contract bids for two years over bribery allegations.
The recovering sentiment was further supported by foreign investors, who purchased a net 659.96 billion won worth of South Korean shares. Meanwhile, the Korean won strengthened slightly against the US dollar, trading at 1,325.2 won, a 0.8 won increase from the previous session’s close.
This rebound reflects renewed confidence in the technology sector, as strong corporate earnings have alleviated concerns about AI infrastructure investments and broader market pressures.