South Korean stocks saw a significant rebound on Wednesday, with the Korea Composite Stock Price Index (KOSPI) climbing 3.29% to close at 5,735.66. This recovery, marked by a gain of 182.92 points, followed sharp losses in the previous session and was fueled by easing concerns over spending on artificial intelligence (AI) infrastructure, which boosted semiconductor shares.
The rally was driven by improved investor sentiment after US-based AI server manufacturer Super Micro Computer reported better-than-expected earnings. This development alleviated worries about the financial burden of AI infrastructure investments, leading to gains among major South Korean technology companies. Samsung Electronics saw its shares rise by 5.67% to 223,500 won, while SK hynix increased by 5.81% to 1.29 million won. SK Corp., the holding company of SK Group, also advanced by 12.62% to 482,000 won, recovering from a previous decline.
LS Electric contributed to the positive market movement, climbing 7.02% to 166,100 won after reporting stronger-than-expected third-quarter earnings. The company’s performance was bolstered by growing demand for power equipment used in AI data centers.
While the overall market showed positive trends, some companies faced setbacks. Defense firm LIG D&A experienced a significant drop, plunging 9.03% to 498,500 won. This decline came after South Korea’s arms procurement agency barred the company from bidding on defense contracts for two years due to bribery allegations.
Foreign investors played a crucial role in the market’s recovery, purchasing a net 659.96 billion won worth of South Korean shares. Additionally, the Korean won strengthened slightly against the US dollar, trading at 1,325.2 per dollar, a rise of 0.8 won from the previous session’s close.
This rebound reflects renewed investor confidence in technology stocks, fueled by strong corporate earnings and diminished concerns over AI infrastructure spending, which helped stabilize broader market pressures.