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Key Points

South Korea's KOSPI index has soared past the 3,000-point threshold for the first time in over three years, largely thanks to gains in major tech stocks like Samsung Electronics and SK hynix. Bio and battery stocks also contributed to the index's rise, while some sectors like nuclear power manufacturing saw declines. MSCI has noted improvements in South Korea's market accessibility but pointed out continued operational challenges. The rating on Korea's stock short selling has been raised as Seoul lifted its ban, signaling a positive outlook for future trading stability.

Key Points: South Korea's KOSPI Tops 3,000 Points Driven by Tech Gains

  • KOSPI hits 3,000 first time since January 2022
  • Samsung Electronics and SK hynix lead gains
  • MSCI highlights market reforms and ongoing constraints
2 min read

S. Korea's key stock index tops 3,000 points for 1st time in over 3 years

KOSPI surpasses 3,000 points for first time in 3 years, boosted by tech and bio stocks.

"Despite these reforms, the registration process continues to face operational hurdles. - MSCI"

Seoul, June 20

South Korea's key stock index breached the 3,000-point mark for the first time in more than three years on early Friday morning, driven by gains in big-cap tech shares.

The benchmark Korea Composite Stock Price Index (KOSPI) had risen 31.84 points, or 1.07 percent, to 3,009.58 as of 11:15 a.m. It marked the first time the KOSPI hit the 3,000-point threshold since Jan. 3, 2022, reports Yonhap news agency.

KOSPI surpassed the mark for the first time ever in its history on January 6, 2021.

Tech behemoth Samsung Electronics gained 0.84 percent, while its chipmaking rival SK hynix jumped 3.25 percent.

Bio shares were strong, with Samsung Biologics up 1.8 percent and Celltrion gaining 1.87 percent.

Leading battery maker LG Energy Solution soared 3.78 percent, and defense giant Hanwha Aerospace went up 1.71 percent.

Kakao, the operator of the country's dominant mobile messenger, surged 3.48 percent, and major shipbuilder HD Hyundai Heavy advanced 2.21 percent.

But nuclear power plant manufacturer Doosan Enerbility slipped 1.97 percent, and HD Korea Shipbuilding dropped 1.45 percent.

The local currency was trading at 1,373.6 won against the greenback at 11:15 a.m., up 6.6 won from the previous session.

South Korea has taken a series of measures to improve foreign accessibility to its equity and currency markets, but such access still remains limited, global index provider Morgan Stanley Capital International (MSCI) said on Friday.

In its 2025 market accessibility review report, MSCI said the South Korean market has implemented a series of foreign exchange market reforms, such as the extension of trading hours and the allowance of foreign players to participate in the onshore forex market.

The global index provider, however, noted there is no offshore currency market and that constraints persist on the onshore currency market.

"Despite these reforms, the registration process continues to face operational hurdles. Moreover, the limited usage of omnibus accounts and over-the-counter transactions has constrained the impact of related regulatory initiatives," it said.

MSCI raised its rating on Korea's stock short selling to positive from negative as Seoul fully lifted its stock short selling ban, reintroduced in November 2023, in late March while taking new regulatory and technical measures aimed at enhancing oversight of the trading method.

The global index provider said it will continue to monitor developments to assess the stability of the regulations over time.

South Korea remained on MSCI's emerging market list last year as the country reimposed the ban on stock short selling.

- IANS

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Reader Comments

R
Rajesh K.
Great to see South Korea's markets doing well! Their tech giants like Samsung and SK hynix are truly world-class. Maybe Indian markets can learn from their reforms in foreign accessibility. But 3000 points after 3 years? Our Sensex has been breaking records much more frequently! 🇮🇳
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Priya M.
Interesting how their bio and battery companies are performing so strongly. India should focus more on these sunrise sectors too. LG Energy Solution's 3.78% jump is impressive! But we have our own Amara Raja and Exide making progress in batteries 💪
A
Amit S.
The won strengthening against dollar is noteworthy. While we celebrate their stock market success, let's not forget our rupee faces different challenges. South Korea's export-driven economy has different fundamentals than our consumption-driven one. Apples and oranges!
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Sunita R.
Samsung's performance affects India too - they employ thousands here and have massive manufacturing plants. When their stock does well, it's good for Indian workers too. But wish Indian companies got this kind of global recognition more often 🤔
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Vikram J.
The short selling reforms mentioned here are interesting. India banned short selling during COVID too. Market regulation is such a delicate balance - too strict and you stifle growth, too loose and you risk volatility. Korea seems to be finding middle path.
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Neha P.
While celebrating Korea's success, let's appreciate how far Indian markets have come too! Our IT and pharma sectors are world beaters. Different economies, different strengths. But healthy competition is always good for global markets 🌍

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