KOSPI Index Breaks 9,000 Milestone Amid AI and Geopolitical Shifts

The South Korean benchmark KOSPI index reached a historic milestone on June 18, 2026, closing above 9,000 points for the first time. The rally was primarily fueled by semiconductor giants SK Hynix and Samsung Electronics, which surged on artificial intelligence optimism and the shipment of HBM4E memory samples. By June 19, the index opened even higher, ranging between 9,279.14 and 9,288.89.

Market sentiment was bolstered by a U.S.-brokered ceasefire framework with Iran announced on June 14, which reopened the Strait of Hormuz and lowered crude oil prices. However, the rally faced headwinds from the U.S. Federal Reserve. Chair Kevin Warsh maintained interest rates at 3.5 percent to 3.75 percent but signaled a potential rate hike later in 2026 to combat long-term inflation.

Political developments further influenced the market. President Donald Trump released a memorandum of understanding with Iran, though he cautioned it was not a final agreement and warned of resumed attacks if Iran did not comply. Simultaneously, the Trump administration announced a deal between Intel and Apple to manufacture chips within the United States. In South Korea, the government launched a state-run company to manage a US$350 billion investment pledge to the U.S. while activating risk monitoring systems to manage retail leverage during the surge.