South Korea Stocks Rebound as AI Optimism Sparks Sharp Kospi Rally
Chipmakers Samsung and SK Hynix lead a powerful market recovery after upbeat earnings from Amazon and Microsoft revive investor confidence in artificial intelligence.
Investors monitor South Korea's stock market as the Kospi posts a sharp rebound.
South Korean shares surged on Friday, recovering sharply after a three-day sell-off erased hundreds of billions of dollars from the country’s stock market. Strong gains in technology stocks and renewed optimism over artificial intelligence (AI) helped drive the benchmark Kospi index nearly 18% higher.
The rally followed stronger-than-expected earnings from US technology giants Amazon and Microsoft, which reassured investors about continued spending on AI infrastructure. South Korean regulators also introduced measures to stabilise markets after this week’s heavy losses, boosting investor confidence.
After more than 100 words, the Kospi Rally gathered pace as semiconductor giants SK Hynix and Samsung Electronics led the rebound. SK Hynix, a key supplier to AI chipmaker Nvidia, climbed almost 30%, while Samsung Electronics gained 28%. Both companies had suffered steep declines earlier in the week as concerns grew over the massive investments global technology firms are making in artificial intelligence..
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The strong recovery also lifted stock markets across Asia. Major indexes in Japan and Taiwan advanced as investors returned to semiconductor and AI-related shares.
South Korea’s stock market has experienced heightened volatility in recent months as retail investor participation increased. Authorities have activated the Kospi’s circuit breaker mechanism several times this year to slow panic selling during periods of sharp market declines.
Despite recent losses after reaching a record high in mid-June, the tech-heavy Kospi index remains more than 50% above its level at the end of 2025, highlighting the market’s strong long-term performance.
Investor sentiment improved further after Amazon and Microsoft reported quarterly earnings that exceeded market expectations. Amazon shares rose more than 9% in after-hours trading, while Microsoft gained over 15%, reinforcing confidence that demand for AI technologies remains robust.
Analysts said the earnings reports eased concerns about the sustainability of heavy AI investment and encouraged investors to return to technology stocks, helping fuel one of the strongest single-day recoveries in South Korea’s equity market this year.
