Are Seoul Shares on Track for Another Record High?
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Synopsis
Seoul's stock market is on the verge of setting another record high, fueled by optimism surrounding easing U.S.-China trade tensions. Discover how key technology stocks are shaping this exciting market movement and the government's ambitious plans for future corporate investments.
Key Takeaways
- Seoul's stock market is nearing another record high.
- Major tech stocks are driving market gains.
- The easing of U.S.-China trade tensions is boosting investor confidence.
- The South Korean government aims to attract significant corporate investments.
- Long-term strategies include developing key technologies.
Seoul, Oct 24 (NationPress) South Korean equities continued their upward trend late Friday morning, moving closer to achieving yet another record high following days of exceptional rallies. The optimism for a trade agreement surged due to the easing of tensions between the United States and China.
During early trading, the benchmark Korea Composite Stock Price Index (KOSPI) saw an increase of 77.95 points, equivalent to 2.03 percent, reaching 3,923.51, as reported by Yonhap news agency.
The index began on a positive note as the anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the forthcoming Asia-Pacific Economic Cooperation meeting elevated expectations for reduced trade tensions.
Major shares, particularly in the technology sector, reported gains. Notably, chip manufacturer Samsung Electronics rose by 2.49 percent, while its competitor SK Hynix surged by 6.17 percent.
Moreover, leading battery producer LG Energy Solution experienced a rise of 4.92 percent, whereas defense giant Hanwha Aerospace saw a decline of 1.81 percent.
The local currency was valued at 1,434.5 won against the U.S. dollar, appreciating by 5.1 won from the previous day's close.
South Korean stocks opened significantly higher on Friday, driven by advancements in major technology and financial sectors, as the easing of tensions between the United States and China alleviated recent market concerns and bolstered hopes for a trade agreement.
After a remarkable six-day winning streak, the KOSPI saw a brief pause on Thursday as investors chose to secure profits.
In a related development, South Korea aims to attract 30 trillion won (approximately $20.8 billion) in corporate investments by 2030 to enhance 40 crucial technologies within the materials, parts, and equipment sector, vital for fields such as artificial intelligence (AI) and quantum computing, as stated by the industry ministry on Thursday.
This anticipated investment includes the establishment of 20 specialized industrial complexes for materials, parts, and equipment firms by 2030, with 10 already operational, according to the Ministry of Trade, Industry, and Resources.
To stimulate corporate investments, the government is planning to provide various incentives, including low-interest loans, subsidies, and business consultation services, alongside streamlining regulations concerning construction and research and development (R&D).
Point of View
It is essential to recognize the dynamic shifts in the South Korean stock market. The recent gains reflect both global economic trends and local strategic initiatives, emphasizing the importance of fostering corporate growth in key technological sectors. This approach not only bolsters the economy but also enhances South Korea's position on the global stage.
NationPress
24/10/2025
Frequently Asked Questions
What factors are driving the increase in Seoul's stock market?
The optimism surrounding easing tensions between the United States and China is a significant factor, along with strong performances from major technology companies.
How is the South Korean government supporting corporate investments?
The government plans to attract corporate investments through incentives such as low-interest loans, subsidies, and streamlined regulations.
What is the KOSPI, and why is it important?
The KOSPI is the benchmark stock index for South Korea, reflecting the performance of its stock market and serving as an indicator of economic health.
