South Korean Market Surpasses 5,000 Amid Tariff Warning and Mixed Global Signals

Updated 2026-01-27 07:40:35+00:00 (25 articles)

KOSPI Breaks 5,000 on Record Volume and Tariff Noise The benchmark index closed at 5,084.85, up 2.73 % and marking its first finish above the 5,000‑point threshold, on the back of 472 million shares traded (≈ 28 trillion won)[1]. A brief dip followed President Trump’s announcement of a possible rise to 25 % tariffs on Korean goods, but investors treated it as short‑term volatility[1]. Samsung Electronics and SK hynix hit all‑time highs, lifting the tech rally[1].

Pre‑Fed Decision Session Saw KOSPI Slip While KOSDAQ Soared On Jan 26 the KOSPI fell 0.81 % to 4,949.59 as traders awaited the U.S. Federal Reserve’s rate verdict[2]. In contrast, the tech‑heavy KOSDAQ surged 7.09 % past the 1,000‑point mark, its strongest level in over four years[2]. The rally was driven by semiconductor stocks even as major chipmakers posted mixed results[2].

Iran Unrest Prompted Modest KOSPI Drop but KOSDAQ Jumped Earlier on Jan 26 the KOSPI slipped 0.48 % to 4,966.03 amid concerns over possible U.S. intervention in Iran’s unrest[3]. The KOSDAQ still rose more than 5 % after a brief program‑buying pause, reflecting strong secondary‑market demand[3]. The won appreciated sharply to 1,441.5 per dollar, supporting market liquidity[3].

Semiconductor Leaders Show Divergent Momentum Samsung Electronics rose 4.87 % to a record 159,500 won on Jan 27, while SK hynix jumped 8.7 % to an all‑time high of 800,000 won[1]. The previous day Samsung was flat and SK hynix fell 4.04 %[2], and on the morning session Samsung edged up 0.33 % while SK hynix dropped 1.96 %[3]. Analysts note that fourth‑quarter earnings expectations are already priced in, prompting focus on upcoming product‑roadmap calls[2].

Investor Flows Shift Between Foreign and Domestic Players Foreign investors net‑bought about 850 billion won on Jan 27, contrasting with a net sell of roughly 1 trillion won by domestic retail investors[1]. The day before, foreigners sold 1.54 trillion won while institutions off‑loaded 158.4 billion won and individuals bought a modest 1.71 billion won[2]. These flow reversals underscore the market’s sensitivity to external policy cues and geopolitical risk.

Sources (3 articles)

Timeline

Dec 8, 2025 – The KOSPI climbs 1.34 % to 4,154.85 ahead of the U.S. Federal Reserve’s two‑day FOMC meeting, with foreign investors net‑buying 321.3 billion won while locals sell 342 billion won; analysts price in a 0.25 ppt rate cut and watch upcoming earnings from Oracle and Broadcom [25].

Dec 15, 2025 – The index falls 1.84 % to 4,090.59 as renewed worries about AI‑related profitability spark selling in Samsung (‑3.76 %) and SK hynix (‑2.98 %); the won strengthens to 1,471.0 per dollar and three‑year Treasury yields drop 9.3 bps to 3.00 % [24].

Dec 16, 2025 – KOSPI slips below 4,000, closing at 3,999.13 (‑2.24 %) while investors await U.S. November payroll data; Daishin Securities’ Lee Kyoung‑min warns that AI‑sector downgrades heighten volatility [23].

Dec 17, 2025 – The market opens lower (‑1.33 % to 4,002.6) as U.S. indices retreat on fresh AI valuation fears; Samsung drops 0.65 % and SK hynix rises 1.09 % amid a 1.3‑won appreciation of the won to 1,478.5 /USD [22].

Dec 18, 2025 – KOSPI declines 1.53 % to 3,994.5; Oracle’s data‑center pull‑out fuels AI‑profitability concerns, but Daishin’s Lee Kyoung‑min notes Micron’s earnings surprise limits the drop [21].

Dec 26, 2025 – A “Santa rally” lifts the KOSPI by 0.56 % to 4,131.59; Samsung (+2.88 %) and SK hynix (+1.02 %) lead gains, while the won weakens to 1,453.2 per dollar [20].

Jan 2, 2026 (open) – In the first 15 minutes of 2026 trading, the KOSPI rises 0.59 % to 4,238.83, driven by retail buying that offsets foreign selling; Samsung (+2.59 %) and SK hynix (+0.92 %) lead the top‑cap rally [19].

Jan 2, 2026 (mid‑morning) – The index climbs to 4,260.55 (+1.1 %) as retail investors push semiconductor leaders Samsung (+3.67 %) and SK hynix (+2.3 %) higher; the won slips to 1,442.75 /USD [18].

Jan 2, 2026 (close) – KOSPI closes at an all‑time high of 4,309.63 (+2.27 %), with Samsung (+7.17 %) and SK hynix (+3.99 %) hitting record levels; foreign investors net‑buy 644.68 billion won amid record 2025 exports of $709.7 bn [17].

Jan 5, 2026 – A tech‑driven rally lifts KOSPI 3.43 % to 4,457.52, a new 4,400‑level high; Samsung surges 7.47 % to a six‑year peak, while the won weakens to 1,443.8 /USD and three‑year yields ease to 2.933 % [16].

Jan 6, 2026 – KOSPI breaks the 4,500 barrier for the first time, closing at 4,525.48 (+1.52 %); semiconductor, brokerage and shipbuilding stocks lead, with Samsung up 0.58 % and SK hynix +4.31 %; domestic retail investors buy 597.55 billion won, offsetting foreign net sales [13][14][15].

Jan 7, 2026 (open) – KOSPI opens sharply higher, jumping 1.53 % to 4,594.85, as semiconductor giants Samsung (+2.81 %) and SK hynix (+3.99 %) rally; the won trades at 1,448.6 /USD [12].

Jan 7, 2026 (close) – The index sets a new record at 4,551.06 (+0.57 %) after briefly topping 4,600; Hyundai Motor soars 13.8 % following Boston Dynamics’ Atlas demo at CES, while foreign investors net‑buy 1.25 trillion won [10][11][12].

Jan 8, 2026 (open) – Seoul shares open higher, with KOSPI at 4,556.33 (+0.12 %); defense and shipbuilding names such as Hanwha Aerospace (+8.12 %) and HD Hyundai Heavy Industries (+5.39 %) drive the advance, while the won weakens to 1,449.1 /USD [9].

Jan 8, 2026 (close) – KOSPI posts a fresh record high of 4,552.37 (+0.03 %) despite profit‑taking; shipbuilding and defense stocks lead gains, while Samsung falls 1.56 % despite a record Q4 earnings outlook; the won slides to 1,450.6 /USD and three‑year yields dip to 2.902 % [8].

Jan 9, 2026 – KOSPI reaches 4,586.32 (+0.75 %), a fresh near‑4,600 record, propelled by autos (Hyundai Motor +7.49 %) and defense; foreign investors sell for the second straight day, netting 1.59 trillion won outflows [7].

Jan 16, 2026 (open) – KOSPI opens above 4,800 for the first time at 4,807.36 (+0.21 %); Wall Street’s TSMC earnings boost chip sentiment, while Naver and NCSOFT fall after being excluded from a government AI‑foundation competition [6].

Jan 16, 2026 (close) – The index closes at a record 4,840.74 (+0.99 %), with semiconductor leaders Samsung (+3.47 %) and SK hynix (+0.93 %) sustaining the rally; market cap surpasses 4,000 trillion won and foreign investors net‑buy 405 billion won [5].

Jan 19, 2026 – KOSPI intraday tops 4,900 at 1:57 p.m., marking the 12th consecutive daily gain; auto and tech stocks lead the rally, underscoring continued bullish momentum early in the year [4].

Jan 26, 2026 (morning) – KOSPI slips 0.48 % to 4,966.03 as investors watch U.S. response to Iran unrest; Samsung edges up 0.33 % while SK hynix falls 1.96 %; the won strengthens to 1,441.5 /USD [3].

Jan 26, 2026 (later) – The index falls 0.81 % to 4,949.59 ahead of the Federal Reserve’s rate decision, while the tech‑heavy KOSDAQ surges 7 % past 1,000; analysts such as Kiwoom’s Han Ji‑young urge monitoring HBM4 roadmap calls [2].

Jan 27, 2026 – KOSPI closes above 5,000 for the first time at 5,084.85 (+2.73 %); despite President Trump’s warning of raising South Korean tariffs to 25 %, the market treats the dip as short‑term noise; Samsung hits a record 159,500 won and SK hynix 800,000 won, while foreign investors net‑buy 850 billion won [1].