South Korean stocks staged a sharp rally on Friday, recovering from a steep sell-off earlier in the week, as renewed spending plans from major technology companies reignited investor confidence in the AI trade.
The benchmark Kospi index jumped as much as 15% during the session, marking its largest intraday gain on record. Shares of SK Hynix soared as much as 28% after SK Group Chairman Chey Tae-won made a rare direct purchase of the company's stock. Samsung Electronics also surged, rising as much as 26% in the session.
The Kospi had fallen 17% over the past three trading sessions amid concerns over rising debt levels among global tech giants and competitive pressures. The recent volatility has intensified since the introduction of leveraged products in May, which amplified the AI-driven rally seen earlier this year.
"The recent acceleration in selling of AI tech stocks, driven by deleveraging, position reductions, forced liquidations, and other liquidity factors, may be stabilizing," said Shawn Oh, head of Korean cash equities at NH Investment & Securities.
Chey Tae-won purchased 3,620 shares of SK Hynix in the open market, valued at approximately 4.8 billion won based on Thursday's closing price. This marks his first personal direct investment in the chipmaker, widely interpreted as a vote of confidence in the company's long-term prospects following the sharp decline in its share price.
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