KOSPI Reclaims 7,000 Mark as AI Chip Demand Powers Samsung Electronics and SK Hynix

South Korea's benchmark KOSPI index climbed back above the 7,000-point threshold on Tuesday, extending a two-day rally led by the country's biggest semiconductor makers. By mid-morning trading, the index had advanced roughly 1.8%, building on Monday's surge of more than 4.6%, its strongest single-day performance in weeks.

The move was driven almost entirely by renewed enthusiasm for memory chips tied to artificial intelligence infrastructure. Samsung Electronics gained close to 2.6% during the session, while SK Hynix jumped nearly 4%, adding to the previous day's sharp gains for both stocks. Investors have grown more confident that demand for high-bandwidth memory and other advanced chips will keep rising as AI companies expand their computing capacity, positioning the two Korean giants as key beneficiaries of that spending cycle.

The rally was not confined to chipmakers. Korea Electric Power rose more than 4%, and SK Innovation also advanced, reflecting broader buying across technology-adjacent and energy names. On the secondary KOSDAQ board, battery material makers EcoPro and EcoPro BM, along with equipment suppliers Jusung Engineering and Wonik IPS, posted solid gains, though the index rose more modestly than the KOSPI. Not every stock joined the advance: Hyundai Motor and LG Energy Solution slipped, while some biotech and robotics names such as Alteogen and Robotis ended lower.

Foreign and institutional investors were the main buyers behind Tuesday's gains, while retail investors took profits after the recent run-up. The Korean won also firmed against the US dollar, trading modestly stronger than the previous session, a sign that international capital continued flowing into Korean assets even as sentiment elsewhere remained cautious.

Despite the buoyant mood in Seoul, analysts flagged risks building outside Korea's borders. Oil prices extended a multi-day climb amid escalating tensions in the Middle East, with Brent crude trading near $97 a barrel after reports of Iranian threats against energy infrastructure in the Gulf. Elevated US Treasury yields and uncertainty over the Federal Reserve's next policy move added further complexity for investors weighing how long the chip-driven rally can offset those macro headwinds.

For now, though, the story in Seoul remains firmly about semiconductors. With Samsung Electronics and SK Hynix commanding outsized weight in the KOSPI, their swings continue to set the tone for the entire Korean market, and Tuesday's session showed just how quickly AI-related optimism can lift the benchmark back toward levels not seen in weeks.