South Korean financial markets witnessed a significant upswing on Friday, December 26, 2025, driven primarily by a powerful rally in the technology sector. The benchmark KOSPI index climbed, with semiconductor giants like Samsung Electronics reaching unprecedented heights, mirroring optimism from their U.S. counterparts.
Market Rally Led by Chipmakers
The focal point of the trading session was the stellar performance of chipmaking stocks. The benchmark KOSPI rose by 30.84 points, or 0.75%, to reach 4,139.46 as of 0208 GMT. This surge was fueled by growing investor confidence in the artificial intelligence (AI) sector, which has propelled chip stocks globally.
Leading the charge, Samsung Electronics saw its shares jump by 4.77%, achieving a historic all-time high. Its peer, SK Hynix, also posted strong gains of 2.55%. This rally followed a positive close on U.S. markets, where chipmaker Micron Technology had climbed 3.8% to a record closing high after issuing a robust forecast.
Currency and Bond Market Movements
The positive sentiment extended beyond equities to the currency market. The Korean won strengthened against the U.S. dollar, quoted at 1,441.2 on the onshore settlement platform. This marked a 0.31% appreciation from its previous close of 1,445.7, reaching its highest level since November 4 at an intraday peak of 1,438.0.
In the debt markets, yields moved higher. The most-liquid three-year Korean treasury bond yield increased by 1.9 basis points to 2.953%, while the benchmark 10-year yield rose by 2.9 basis points to 3.371%. March futures on three-year treasury bonds edged lower by 0.02 point to 105.44.
Sector Performance and Investor Activity
While tech stocks soared, the market breadth was mixed. Among other major index components, several companies faced downward pressure.
- Battery maker LG Energy Solution declined by 1.79%.
- Automakers Hyundai Motor and Kia Corp fell 0.35% and 0.62%, respectively.
- Steelmaker POSCO Holdings shed 1.59%.
- Drugmaker Samsung BioLogics decreased by 0.59%.
Overall, market participation showed a tilt towards decliners, with 647 shares falling and only 226 advancing out of 929 traded issues. However, foreign investors displayed strong buying interest, being net purchasers of shares worth a substantial 893.6 billion won.
The market's stability efforts were also in focus, as South Korea's national pension fund initiated a new round of strategic foreign exchange hedging operations earlier in the week. Friday's performance underscores the dominant influence of global AI trends and semiconductor sector dynamics on South Korea's export-driven financial markets.
