KOSPI Rallies on Semiconductor Surge Despite Middle East Tensions

The benchmark Korea Composite Stock Price Index (KOSPI) experienced significant volatility and growth between July 9 and July 10, 2026, driven primarily by the semiconductor sector. On July 9, the index rose initially on the back of chip stocks, with SK hynix jumping 6.65 percent following reports that its U.S. listing was oversubscribed by more than seven times. However, retail selling and concerns over the artificial intelligence memory cycle tempered these gains, leading the KOSPI to close at 7,291.91.

Market uncertainty was heightened on July 9 by escalating geopolitical conflict. President Donald Trump announced at a NATO summit in Turkey that a memorandum of understanding to end the conflict with Iran had ended, coinciding with reports that the U.S. military struck 90 targets in Iran. To hedge against such external financial uncertainties, South Korea's Ministry of Economy and Finance issued 1.7 billion euros in foreign exchange stabilisation bonds, its largest euro-denominated issuance to date.

Sentiment shifted positively by Friday morning, July 10, as the KOSPI opened 3.57 percent higher, reaching 7,545.51 by late morning. This rally was supported by overnight gains on Wall Street, easing oil prices, and continued strength in technology shares. Samsung Electronics advanced 3.78 percent and Samsung Electro-Mechanics increased by 6.43 percent, while the Korean won strengthened slightly to 1,504.5 per U.S. dollar.