Kospi Enters Bull Market as Samsung, SK Hynix Surge on AI Optimism

South Korea's benchmark Kospi index surged more than 4% in early trading on Thursday, propelling its advance from the July 30 low to approximately 23% and formally pushing the market into a technical bull market, commonly defined as a rise of 20% or more from a recent trough.

The rally was led by the country's two dominant chipmakers. Samsung Electronics climbed over 4%, while SK Hynix, the world's leading supplier of high-bandwidth memory chips used in AI accelerators, jumped more than 7%. The two companies together account for a substantial share of the Kospi's total market capitalization, meaning their moves have an outsized influence on the broader index.

The surge reflects a broader wave of renewed global optimism over spending on artificial intelligence infrastructure, which has reignited investor appetite for semiconductor makers supplying the memory chips and components that power data centers and AI systems. That enthusiasm has flowed directly into South Korea's stock market, given the central role Samsung and SK Hynix play in global memory chip supply chains.

The rebound marks a sharp turnaround from the weakness seen at the end of July, when the Kospi touched its recent low amid broader concerns about global tech valuations and trade tensions. Since then, the index has staged a rapid recovery as sentiment around AI-related demand has improved.

South Korea's economy remains heavily reliant on the semiconductor sector, which is one of the country's largest export categories. A sustained rally in chip stocks tends to have ripple effects across the broader economy, from corporate investment plans to the value of the won, making Thursday's rally a closely watched signal for the health of the export-driven economy heading into the second half of the year.

Market watchers noted that while the bull market designation is a notable psychological milestone, the durability of the rally will likely hinge on whether global AI infrastructure spending continues at its current pace and whether chip pricing trends remain favorable for Korean manufacturers.