Share prices in South Korea experienced a significant jump on Friday, partly reversing a three-day rout that had removed hundreds of billions of dollars from the country's stock market value. The benchmark Kospi index saw an increase of almost 17% in afternoon trading.
This surge was primarily driven by chip manufacturers SK Hynix and Samsung Electronics. SK Hynix, a key supplier to AI chip firm Nvidia, saw its shares gain over 17%, while Samsung's shares rose by 23%. Both companies had experienced a slump in their stock market value earlier in the week due to a sell-off in artificial intelligence-related stocks.
The rebound followed earnings updates from US technology giants Amazon and Microsoft, which reportedly boosted optimism regarding investments in artificial intelligence. South Korean regulators also announced measures aimed at curbing the week's sell-off. Surging chip stocks also contributed to higher markets in Japan and Taiwan.
The Kospi index had more than doubled in value this year and, despite recent falls since a mid-June record high, remains 50% higher than at the end of 2025. Trading in South Korea has been volatile recently, attracting many retail investors, and the tech-heavy Kospi has been halted multiple times this year by a circuit breaker mechanism designed to calm panic selling.