KOSPI Extends Record Run Above 6,400 as Chip Rally Offsets Geopolitical Jitters

April 23, 2026

South Korea’s benchmark KOSPI index shattered records once again on Wednesday, closing above the 6,400 mark for the first time in history, as a powerful rally in semiconductor stocks overwhelmed mounting geopolitical concerns and rising oil prices.

The index extended its historic winning streak, driven primarily by outsized gains in chipmaking giants Samsung Electronics and SK hynix. A major global broker moved to raise profit forecasts for both companies, fueling investor optimism that the artificial intelligence-driven semiconductor super-cycle remains firmly intact.

Chip Stocks Lead, But Small-Caps Struggle

The KOSPI’s advance was notably narrow. While large-cap tech stocks surged, the small-cap Kosdaq index declined, with battery and biotech stocks under heavy selling pressure. LG Energy Solution, the country’s top battery maker, fell 3.72 percent to 466,500 won as investors took profits following a recent rally.

This divergence highlights a market increasingly bifurcated between AI-exposed winners and the rest. The rally is being driven by a concentrated bet on semiconductor names, while other sectors—particularly those sensitive to oil prices and geopolitical risk—are lagging.

Geopolitical Storm Brews in the Middle East

The record run unfolded against a backdrop of escalating tensions in the Middle East. The U.S. aircraft carrier USS George H.W. Bush is moving closer to the region, and former President Donald Trump has claimed “complete control” over the Strait of Hormuz, a critical chokepoint for global oil shipments.

Crude oil prices surged more than 4 percent on the news, raising concerns about imported inflation for energy-dependent South Korea. However, domestic fuel price caps have helped insulate Korean consumers from the worst of the global spike. According to the Korea Development Institute, the fuel price cap has kept domestic prices from climbing as sharply as global oil prices, though the institute warned there is a “limit to providing” such relief indefinitely.