KOSPI Hits Record High of 3,748.37... Approaching the 'Era of 4,000' [Comprehensive]

[Financial News] On the 16th, the KOSPI closed at a record high of 3,748.37 (up 2.49%), bringing the index closer to the symbolic 'KOSPI 4,000 era.' Expectations for the resolution of the United States–Korea Free Trade Agreement (KORUS FTA) and news of increased Artificial Intelligence (AI) investments in the United States have fueled simultaneous rallies in the semiconductor and automobile sectors, pushing the index to new highs day after day.
On this day, the KOSPI surged by 91.09 points (2.49%) from the previous session to close at 3,748.37. The index opened at 3,675.82, up 0.51%, immediately surpassing the previous intraday record high of 3,659.91, and continued its upward momentum throughout the session.
Aggressive buying by foreign investors and institutions drove the index higher. On the main board, foreigners and institutions made net purchases of 653.2 billion won and 742.8 billion won, respectively. Foreign investors have been net buyers for three consecutive sessions. In contrast, individual investors sold nearly 1.4 trillion won, taking profits.
Optimism in the market, including the joint buying by foreigners and institutions, was underpinned by remarks from U.S. Treasury Secretary Scott Bessent. Secretary Bessent stated that differences over the KORUS FTA are being resolved and that an agreement is expected within the next 10 days.
News of expanded AI investment in the United States also had a positive effect. The previous day, the S&P 500 Index and NASDAQ Composite Index rose 0.4% and 0.7%, respectively, while the Philadelphia Semiconductor Index (SOX) climbed nearly 3%. Secretary Bessent emphasized that 'AI investment is not a bubble but is just entering its initial phase,' dispelling market concerns.
By sector, semiconductors led the gains. Samsung Electronics, the largest company by market capitalization on the KOSPI, closed at 97,700 won, up 2.84% from the previous session, marking a new all-time high. This surpassed the previous intraday record of 96,800 won set on January 11, 2021, after four years and nine months. SK hynix also posted strong gains of over 7%, closing at a record 452,500 won.
The automobile sector also surged on optimism over the KORUS FTA. Hyundai Motor and Kia closed at 242,000 won (up 8.28%) and 111,300 won (up 7.23%), respectively. As the long-standing tariff negotiations that have hampered the automobile industry near their conclusion, expectations for a resolution have fueled buying sentiment.
Securities firms see further upside potential for the KOSPI. Korea Investment & Securities has raised its one-month KOSPI target from 3,500 to 3,750. Daejun Kim, a researcher at Korea Investment & Securities, projected, 'The Korean government's strengthened shareholder return policy and the Fed's dovish monetary stance will support valuation expansion.' Comments by Fed Chair Jerome Hayden Powell that quantitative tightening (QT) could end soon are also seen as positive for market interest rate stability and stock market valuations.
The KOSDAQ index closed at 865.41, up 0.69 points (0.08%). The index opened at 866.82, up 0.24% from the previous session, and fluctuated mildly throughout the day. Among the top KOSDAQ stocks, ECOPRO BM and EcoPro both posted strong gains of over 14%, closing at 143,000 won and 57,700 won, respectively.

elikim@fnnews.com Kim Mi-hee Reporter