South Korea’s Kospi Enters Bull Market as Samsung and SK Hynix Lead Chip Rally
TLDR
- South Korea’s Kospi has risen more than 22% from its July 30 low, entering bull market territory
- Samsung Electronics and SK Hynix each jumped more than 5%, driving the benchmark higher
- The rally follows a brutal July rout caused by forced liquidations of leveraged chipmaker bets
- Strong AI spending from Big Tech firms has restored confidence in memory chip demand
- Foreign investors remain net sellers, having pulled more than $100 billion from Korean shares this year
South Korea’s stock market has made a sharp comeback. The Kospi benchmark rose as much as 4.8% on Thursday, bringing its total gain from a July 30 low to around 22%. That crosses the threshold commonly used to define a bull market.
The recovery has been fast and striking. Just last month, the Kospi fell 22% in its worst monthly performance since the global financial crisis. The drop was triggered by forced liquidations of leveraged bets on chipmaker stocks, which wiped out billions of dollars in retail wealth.
Samsung Electronics and SK Hynix led Thursday’s gains, each climbing more than 5%. Both companies are major producers of memory chips, which are in high demand as AI adoption grows.
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