A powerful rally in South Korean stocks was driven by two major memory chip giants, fueled by renewed global risk appetite following expectations that the Iran conflict may be nearing an end. Global capital flowed heavily into the shares of South Korea's two leading memory chip manufacturers, which have been on a record-breaking uptrend since 2025 and repeatedly hit new all-time highs. The benchmark Kospi index surged nearly 9%, with Samsung Electronics and SK Hynix seeing their gains expand to over 13% and 11% respectively in afternoon trading. The "Korean Wave" (K-Pop) once again swept from Seoul's fashion scene to global stock markets. The small-cap Kosdaq index also rose more than 6%, at one point triggering an exchange-mandated halt to program trading. At the close on Wednesday, the benchmark Kospi index finished up 8.44%. This rally followed four consecutive days of declines that had pushed the benchmark index to the brink of a bear market. Global markets breathed a collective sigh of relief after both the US and Iran indicated a desire to end weeks of military conflict. Ha Seok-keun, Chief Investment Officer at Eugene Asset Management, stated that the surge in South Korean stocks was due to "a shift in global risk appetite driven by the rebound in US stocks, with tech shares leading the gains and pulling the Korean market up." He added that a technical rebound from short-term oversold conditions was also at play, triggering short covering and bargain hunting. Double-digit gains for Samsung and SK Hynix boosted the Kospi index. Other positive factors for the market included data showing rising prices for memory products in March, which helped confirm that the artificial intelligence boom remains on track. News on Tuesday that Nvidia plans to invest $2 billion in Marvell Technology, alongside OpenAI completing its largest funding round to date, also provided a lift to US tech stocks. The Iran conflict had triggered extreme volatility in South Korean stocks, transforming the market from the world's best performer in February to the worst performer in March. Tech stocks had previously suffered heavy losses due to stagflation fears related to the war; memory chip makers faced additional pressure from concerns that a compression technology from Google could weaken demand. Markets continue to fluctuate with daily news headlines, and uncertainty remains high. US President Trump is scheduled to deliver a speech on the war at 9 PM Washington time on Wednesday. Domestic funds were net buyers of Kospi stocks, while foreign and retail investors were net sellers. Jung In-yun, CEO of Fibonacci Asset Management Global, noted, "For those who still believe the regional conflict is not over, this is a good time to take profits," pointing out that "the potential for surprises remains significant," and energy prices could stay elevated until year-end.
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