- The KOSPI opened 2026 by closing at a record 4,309.63, surpassing the 4,300 level for the first time with a 2.27% gain.
- Samsung Electronics and SK hynix led the rally on strong global chip demand, supported by December exports jumping 13.4% year-on-year.
- Foreign investors were major net buyers, offsetting selling by individuals and institutions and driving gains in semiconductor and tech-related sectors.
- Analysts see further upside from AI-driven semiconductor strength and policy support but warn of concentration risk and vulnerability to U.S. rate and FX shifts.
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The South Korean benchmark, KOSPI, delivered a striking start to 2026 by closing at 4,309.63 points on its first trading day, January 2, a gain of 95.46 points or 2.27% over the previous session that broke through the 4,300 level for the first time in history. This performance builds on its achievement in 2025 of clearing the 4,000 mark for the first time ever, underscoring a sustained rally led by export strength and sector-wide enthusiasm, particularly in semiconductors.
Semiconductor giants Samsung Electronics and SK hynix were at the forefront, both seeing double-digit percentage gains intraday—Samsung closed at 128,500 won (up ~7.17%), SK hynix at 677,000 won (up ~3.99%). The export data for December showed a YoY rise of 13.4% to US$69.6 billion, markedly outperforming consensus estimates (~8.3%), reinforcing global demand in areas favoring Korea’s tech sector.
On the investor side, foreign investors were net buyers to the tune of ~700-odd billion won, cushioning significant net selling by individual and institutional investors. Sectorally, semiconductors (and semiconductor equipment), communications, and electrical/consumer sectors led the gains, while others—cosmetics, biotech—lagged.
Looking ahead, analysts are cautiously optimistic. The combination of improving earnings trajectories, robust semiconductor industry dynamics (especially amid AI tailwinds), supportive export data, and active government policy efforts are seen as positive drivers. However, the index’s strong performance is heavily concentrated in a few mega-caps; any hiccups in U.S. rate expectations, currency swings, or export demand could trigger sharp corrections.
Strategic implications include a potential rebalancing of exposure toward semiconductor and technology names, close monitoring of foreign investor flows, and hedging against macroeconomic risks such as foreign policy or monetary policy shifts. For institutional investors, the concentration risk—where two companies forecasted to account for ~38% of total KOSPI operating profit—suggests both high reward and high fragility.
Supporting Notes
- KOSPI closed at 4,309.63 on Jan 2, 2026, up 2.27% over the previous session; first time above 4,300.
- Samsung Electronics rose ~7.17% to 128,500 won; SK hynix rose ~3.99% to 677,000 won.
- December 2025 exports were US$69.6 billion, up 13.4% YoY, beating consensus (~8.3%).
- Foreign investors net bought ~712.5 billion won; individuals net sold ~448.2 billion won; institutions net sold ~149.3 billion won.
- Semiconductors & semiconductor equipment sector up ~6.01%; communication equipment ~5.98%; electrical equipment ~5.11%; cosmetics ~4.82%.
- KOSPI’s top two companies projected to contribute ~38% of its total operating profit in 2026: Samsung Electronics ~87.1 trillion won; SK hynix ~77.1 trillion won.
- Risks noted: heavy profit concentration, foreign rate policy uncertainties, exchange-rate swings.
- Historical note: this marks the fifth time the index set an all-time high on the first trading day of the year (also 1988, 2006, 2011, 2021).
Sources
- www.koreatimes.co.kr (The Korea Times) — January 2, 2026
- pulse.mk.co.kr (Maeil Business News Korea / Pulse) — January 2, 2026
- www.mk.co.kr (MK) — January 2, 2026
- www.smarttoday.co.kr (Smart Today Co.) — January 2, 2026