The market's jump
The Seoul stock exchange closed Wednesday's session up more than 6%, according to The Korea Herald. The benchmark Kospi gained 374.1 points, or 6.63%, ending at 6,012.44 after touching an intraday high of 6,032.28. Semiconductor stocks led the move, supported by SK hynix's quarterly results and the announcement of a shareholder remuneration plan.
Results and market measures
SK hynix, described as the world's second-largest memory producer, reported record revenue and operating profit for the third quarter, attributed to strong chip demand amid artificial intelligence development. The company also announced a shareholder remuneration program for 2026 worth more than 100 trillion won, about $75.3 billion.
The rally in technology stocks prompted the Korea Exchange to activate a buy-side sidecar shortly before 11 a.m., suspending program-trading buy orders on Kospi stocks for five minutes. The mechanism is triggered when Kospi 200 futures rise by at least 5% and remain at that level for at least one minute; according to the source, this is the second consecutive session in which it has been activated. Volumes remained modest: 223.2 million shares for 19.83 trillion won, with 580 stocks rising and 288 falling. Foreigners bought a net 815.83 billion won and institutions a net 960.79 billion, while individual investors sold 1.8 trillion.
Stocks and currency
Among the heavyweights, Samsung Electronics closed at 242,000 won, up 9.01%, and SK hynix at 1.49 million won, up 10.89%. SK Square, the parent company of SK hynix, rose 11.23% to 921,000 won, and Samsung Electro-Mechanics rose 8.74% to 1.3 million won. On the currency market, the won weakened: 1,337.7 per dollar at 3:30 p.m., a loss of 10.7 won from the previous close. Bond prices closed lower, with the three-year yield up 4.1 basis points to 3.799% and the five-year yield up 5 basis points to 3.949%.
Investors were also awaiting the Federal Reserve's rate decision, expected on Thursday morning, seeking indications on the future path of U.S. rates.
Valuations and open questions
Lee Jae-won, an analyst at Yuanta Securities, said SK hynix had shown how strong demand for AI chips can translate into solid operating profits and shareholder returns, easing fears about the sustainability of the AI-driven rally and a possible peak in the memory cycle. This is the analyst's assessment, not a verified fact.
Some elements remain to be verified: the detail of the quarterly results and the terms of the remuneration plan, the reasons for the sidecar's activation in the previous session, and the outcome of the Federal Reserve meeting. According to the available material, the durability of the move will depend on chip demand and rate guidance.
