KOSPI Shatters the Unthinkable: How Did Korea’s Market Break 5,000 Overnight?

South Korea’s benchmark KOSPI index crossed the historic 5,000 level for the first time on January 22, driven by strong gains in semiconductor stocks and improved global sentiment.

As of 9:14 a.m. local time, the KOSPI stood at 5,002.02, up 92.09 points or 1.88% from the previous session. The index opened higher at 4,987.06 and continued to extend gains, briefly reaching an intraday high of 5,016.73. This milestone comes just three months after the KOSPI first surpassed the 4,000 mark, ushering in what had long been considered the “dream index” era.

Market sentiment was supported by news that the United States decided to withdraw planned tariffs on eight European countries. In addition, U.S. President Donald Trump stated that no military force would be used in relation to Greenland, easing geopolitical tensions.

Overnight, U.S. markets closed higher, with the Dow Jones Industrial Average rising 1.21%, the S&P 500 gaining 1.16%, and the Nasdaq Composite advancing 1.18%. Semiconductor stocks such as Nvidia and Micron posted notable gains, pushing the Philadelphia Semiconductor Index up 3.18%.

In the Korean market, individual investors were net buyers, purchasing approximately KRW 406.5 billion worth of shares, while foreign and institutional investors recorded net selling. The Korean won strengthened against the U.S. dollar, opening at 1,467.0 per dollar, up 4.3 won from the previous day.

Samsung Electronics rose 4.48%, touching a record high of KRW 157,000, while SK Hynix climbed 4.19%. Hyundai Motor also reached a new all-time high, gaining 5.10% to KRW 590,000. Other large-cap stocks, including LG Energy Solution and Kia, traded higher. In contrast, defense-related stocks weakened amid easing geopolitical risks.

Sector-wise, electronics, securities, and transportation shares led the gains, while pharmaceuticals and utilities declined.

The KOSDAQ index also advanced, rising 0.82% to 959.10, supported mainly by buying from individual investors, despite net selling by foreign and institutional participants.