Kospi hits 4,200 on AI partnership optimism

KOSPI surpassed 4,200 just five trading days after breaking 4,000, driven by rising expectations for South Korea’s AI ecosystem following an alliance between Nvidia CEO Jensen Huang and Korean companies.

On Nov. 3, the KOSPI closed at 4,221.87, up 2.78% from the previous trading day. It surpassed 4,200 just five trading days after closing above 4,000 on Oct. 27. Foreign investors were net buyers of about 800 billion won, while both retail and institutional investors also purchased shares, boosting the market.

AI-related companies led the rally amid optimism surrounding the Asia-Pacific Economic Cooperation summit. Samsung Electronics rose 3.35% to about 110,000 won per share, while SK hynix jumped nearly 11%, surpassing 600,000 won and pushing its market capitalization above 450 trillion won.

Earlier enthusiasm from OpenAI CEO Sam Altman’s order of DRAM equivalent to 900,000 wafers per month had already boosted semiconductor stocks. With the Nvidia alliance, the AI momentum spread beyond semiconductors to power and software sectors. Expectations for data center investment lifted shares of power equipment maker HD Hyundai Electric by 9.08% and cable maker LS by 4.07%.

Hyundai AutoEver, the software affiliate of Hyundai Motor Group, which is scheduled to receive Nvidia’s next-generation AI chip Blackwell, has surged about 40% since the so-called “chicken-and-beer” meeting where the alliance was discussed.


홍석호 기자 will@donga.com