South Korean stocks experienced a significant rebound on Wednesday, with the Korea Composite Stock Price Index (KOSPI) rising by 3.29% to close at 5,735.66. This surge followed a period of sharp losses, as easing concerns over the costs associated with artificial intelligence (AI) infrastructure investments buoyed semiconductor shares. Positive earnings reports from U.S.-based AI server manufacturer Super Micro Computer played a key role in improving investor sentiment.
Major technology companies in South Korea, including Samsung Electronics and SK hynix, benefited from the renewed confidence. Samsung Electronics saw its shares increase by 5.67% to 223,500 won, while SK hynix rose by 5.81% to 1.29 million won. The holding company SK Corp. also recovered from recent declines, advancing 12.62% to 482,000 won.
LS Electric reported stronger-than-expected third-quarter earnings, which contributed to a 7.02% rise in its shares to 166,100 won. The company attributed its performance to growing demand for power equipment used in AI data centers.
Conversely, defense company LIG D&A faced a setback as its shares plunged 9.03% to 498,500 won. This came after South Korea’s arms procurement agency banned the company from bidding on defense contracts for two years due to bribery allegations.
Foreign investors were net buyers of South Korean shares, purchasing 659.96 billion won worth, providing additional support to the market’s recovery. The Korean won also strengthened slightly against the US dollar, trading at 1,325.2, an increase of 0.8 won from the previous session.
Overall, the rebound in South Korean stocks reflects a renewed confidence in the technology sector, driven by strong corporate earnings that eased previous concerns about AI infrastructure investments and broader market pressures.