KOSPI Jumps 3.56%, Triggers Trading Halt as Samsung and SK Hynix Lead Sharp Chip Rebound Rally Today

SEOUL — South Korea's benchmark KOSPI index surged 3.56%, or 231.68 points, to close at 6,747.95 on Tuesday, snapping a two-day losing streak as investors returned in force to beaten-down semiconductor stocks and the country's bourse operator briefly halted program trading amid the sharp rebound.

The index's rally came after the KOSPI had lost 10.5% over the two preceding trading sessions, a stretch that had left the benchmark down more than a quarter from its record closing high reached June 22. Tuesday's session began on shakier footing, with the index initially losing ground in early trading before sharply reversing course around midday and continuing to climb into the close.

A trading halt as the rally accelerated

The strength of Tuesday's rebound prompted the Korea Exchange to activate what is known locally as a buy-side sidecar, a trading curb triggered when the Kospi 200 Futures index rises 5% or more within a one-minute window. Program trading for Kospi-listed shares was suspended for five minutes starting at 12:41 p.m. local time as the rally accelerated, with the index briefly touching an intraday high above 6,821 before settling to its final close of 6,747.95.

Chip stocks lead the recovery

Semiconductor giants Samsung Electronics and SK Hynix led Tuesday's gains, with Samsung climbing 5.94% and SK Hynix rising 6.4% as bargain hunters moved back into technology shares that had been battered during the preceding sessions of the broader AI-related market correction. SK Square also posted strong gains, up 6.97%, while other notable advancers included KB Financial Group, up 3.02%, Kia Corporation, up 2.64%, Shinhan Financial Group, up 3.34%, Hanwha Aerospace, up 2.17%, Doosan Enerbility, up 2.93%, and SK Inc, up 3.28%.

Trading volume for the session came in at a moderate 387.8 million shares, worth approximately 24.5 trillion won, or roughly $16.6 billion. By investor type, foreign investors and institutions were both net buyers during the session, while individual retail investors were net sellers, according to Korea Exchange data.

Strong export data fuels investor confidence

Beyond the technical rebound in chip stocks, Tuesday's rally was further supported by unexpectedly strong export figures. South Korea's exports during the first 20 days of July climbed more than 50% year-over-year, driven in large part by a roughly 180% surge in semiconductor shipments tied to sustained global demand for artificial intelligence infrastructure. That data reinforced investor confidence in the earnings outlook for the country's dominant memory chip manufacturers, further bolstering the case for Tuesday's rebound.

A pullback that analysts describe as technical

The KOSPI's steep decline over the prior two sessions has drawn attention from major international banks assessing whether the pullback represents a lasting shift in sentiment or a more temporary correction. Citi analysts characterized the recent sell-off as largely technical in nature. "We think the recent share price pullback of KOSPI equities, led by KR memory suppliers, is more of a technical correction driven by market-wide profit-taking and therefore could represent a potential buying opportunity," the analysts wrote in a note.

Citi's assessment echoed a broader narrative in which South Korea's stock market, the best-performing major global index in 2025, saw its momentum disrupted more recently by concerns over the sustainability of global AI infrastructure spending, concentration risk tied to its two largest listed companies, and speculative trading activity among the country's large base of domestic retail investors.

Easing geopolitical tensions add to the positive tone

Beyond the chip sector-specific catalysts, easing concerns over the conflict between the United States and Iran also contributed to improved investor sentiment across South Korean markets Tuesday. While lingering worries about the Middle East conflict kept some investors cautious, reports of renewed mediation efforts between Iran and the United States helped support broader risk appetite, encouraging buying across a wide range of sectors beyond just technology and semiconductors.

The won strengthens alongside the equity rally

South Korea's currency also firmed against the U.S. dollar as part of Tuesday's broader market rebound, easing back from a 10-week high reached during the recent period of equity market weakness. The combination of a strengthening currency and a sharply higher stock market reflected a broader improvement in investor sentiment toward South Korean assets following the difficult stretch that preceded Tuesday's session.

A volatile year for Korean markets overall

Despite the recent turbulence, the KOSPI remains up substantially over the past year, trading roughly 112.87% higher than the same point in 2025, according to available trading data, even after declining nearly 26% over the trailing month amid the sharp AI-related correction. The index's dramatic rise over the past year has been driven substantially by South Korea's dominant position in global memory chip production, particularly high-bandwidth memory chips essential to artificial intelligence data center infrastructure, a theme that has periodically fueled both sharp rallies and equally sharp pullbacks throughout 2026.

With Tuesday's rebound helping stabilize sentiment following the recent two-day rout, investors are likely to continue closely watching both South Korea's export data trends and developments in the broader global AI infrastructure investment cycle for further signals about the durability of the current rally. At the same time, the trajectory of the U.S.-Iran conflict remains a key variable for both energy prices and broader risk sentiment, with any further progress toward diplomatic resolution likely to provide additional support for South Korean equities in the sessions ahead.