🌸 June 18, 2025 (Wed) – KOSPI Rallies to 3.5-Year High on Tech Strength and Policy Support 📈
📊 Market Summary
- KOSPI: 2,972.19 (+0.74%)
- KOSDAQ: 779.73 (+0.53%)
- KRW/USD Exchange Rate: 1,369.60 (−0.72%)
The South Korean stock market extended gains, with the KOSPI closing at a 3.5-year high. Geopolitical risk in the Middle East eased, and tech stocks—especially in the AI and semiconductor sectors—led the rally. The Korean won also appreciated, reflecting a return of stability.
📰 Key News & Issues
1. 📡 AI & Semiconductor Boom Drives Tech Rally
Investor enthusiasm over AI and crypto trends sent tech shares soaring. Naver surged 15%, Kakao rose 6.4%, and Samsung Electronics climbed 2%. AI and internet platform stocks led the broader market higher.
2. 🏦 Bank of Korea Sees Downward Pressure on Prices from U.S. Tariffs
The central bank commented that recent U.S. tariffs could redirect Chinese goods to Korea, easing inflation. The BOK reaffirmed its mid-term inflation target of around 2%, aligning with its recent rate cut to 2.5%.
3. 🤝 Korea–U.S. Trade Negotiations Pick Up Speed
Korea's Ministry of Foreign Affairs stated that trade negotiations with the U.S. are expected to accelerate through July. This is seen as a favorable development for the auto and semiconductor industries.
4. 💵 Second Supplementary Budget Announced
The Korean government rolled out a 13.8 trillion won extra budget, including fuel tax extensions and AI & semiconductor fund expansions. It reflects a continued fiscal push to boost exports and high-tech investment.
5. 🌐 Korea–Japan Summit Strengthens Diplomatic Ties
President Lee of South Korea met with Japan’s Prime Minister during the G7 Summit, signaling improved Korea-Japan relations. Expanded cooperation in trade and security is expected.
6. 👥 AI Talent Outflow Raises Concerns
With top AI professionals moving to Silicon Valley and elsewhere, the government is concerned about talent leakage. The issue has become a strategic priority in shaping Korea’s AI development roadmap.
🔮 Upcoming Events to Watch
- June 20 (Fri): Korea’s industrial production and trade data release
- Late June: U.S. CPI and PCE inflation data
- Early July: Progress on Korea–U.S. trade negotiations
- This Year: New policies on AI talent retention and industrial investment
💡 Conclusion & Investment Strategy
📌 Summary
Korea's equity market benefitted from global easing of geopolitical tensions and strong domestic tech momentum. Central bank policy and trade diplomacy are moving in favorable directions. With the AI and semiconductor sectors gaining tailwinds, investor sentiment remains constructive.
📌 Investment Strategy
- Focus on AI & Tech: Consider positions in Naver, Samsung Electronics, and SK Hynix
- Cautious Allocation Ahead of Data Releases: Monitor upcoming trade and production figures
- Take Advantage of FX Stability: KRW strength may attract foreign investors; hedge via ETFs
- Watch for Korea–Japan & Korea–U.S. Cooperation Plays: Auto, materials, chemicals may benefit
- Diversify in Education, AI Infrastructure Stocks: Especially those benefiting from talent retention efforts
📝 Final Thoughts
With Korea’s stock market touching new highs and geopolitical risks receding, the outlook remains bright for the near term. Policy initiatives—both fiscal and diplomatic—are lining up to support continued growth. As always, keep a balanced portfolio and stay informed to adapt to shifting dynamics. Wishing you a profitable day ahead!