The KOSPI is set to challenge the 9,000 level for the first time in history this week, after surging more than 8% last week to a record high. With easing geopolitical risks in the Middle East and a continued semiconductor rally expected, market attention is focused on whether the index can extend its gains amid major events including Nvidia GTC Taipei, a Korea visit by Nvidia CEO Jensen Huang, Computex, and the U.S. employment report.
According to the Korea Exchange on Sunday, the KOSPI closed at 8,476.15 on May 29, up 628.44 points, or 8.01%, from the previous week. After hitting an all-time high, the benchmark index sits about 524 points, or 6.18%, away from the unprecedented 9,000 level.
The KOSPI broke through 8,000 intraday for the first time on May 15, but soon faced concerns of overheating from the rapid surge, profit-taking, and a spike in U.S. Treasury yields, with worries even emerging that the index could fall below 7,000. However, after U.S. President Donald Trump said negotiations with Iran had entered the final stage, Middle East risks eased and global financial markets stabilized. Korean equities resumed their upward trend.
Leading the KOSPI's gains last week were the semiconductor heavyweights. Samsung Electronics (005930.KS) and SK hynix (000660.KS) surged 8.37% and 20.20%, respectively. Samsung Electronics climbed to the 310,000 won range and SK hynix to the 2.33 million won range, driving the KOSPI higher. As a result, the two stocks accounted for 50.7% of the KOSPI's total market capitalization as of May 29, surpassing half of the entire market for the first time.
Single-stock leverage exchange-traded funds (ETFs) for Samsung Electronics and SK hynix, launched on May 27, also added momentum to the KOSPI's rally. The 16 products attracted significant investor inflows immediately after launch, with combined market capitalization surpassing 5 trillion won within two days of listing.
On the supply-and-demand side, retail and institutional investors led the rally. On the main bourse last week, retail investors net-purchased 2.04 trillion won and institutions net-purchased 2.13 trillion won. Foreign investors, by contrast, net-sold for 16 consecutive trading sessions—the longest streak this year—offloading 4.20 trillion won over the week.
This week, the market will gauge whether the KOSPI can break through 9,000 by watching for further gains in the semiconductor sector, along with developments in the Middle East, oil prices, major international events, and key U.S. economic indicators.
The fact that U.S. stocks closed higher across the board on May 29 on hopes for an Iran ceasefire memorandum of understanding (MOU) is seen as a favorable factor for Korean equities. The Dow Jones Industrial Average rose 0.72%, the S&P 500 gained 0.22%, and the Nasdaq added 0.20%.
In addition, a series of global information technology (IT) events are scheduled this week, including Nvidia GTC Taipei 2026 (June 1-4), Computex (June 2-5), and Microsoft Build (June 2-3). Market attention is particularly focused on Nvidia CEO Jensen Huang's Korea visit, during which he is expected to meet with SK Group Chairman Tae-won Choi, Hyundai Motor Group Executive Chairman Euisun Chung, LG Group Chairman Kwang-mo Koo, and Naver Chairman Lee Hae-jin. It will be Huang's first visit to Korea in about seven months, since he attended the Asia-Pacific Economic Cooperation (APEC) CEO Summit held in Gyeongju last October.
"Physical AI and software-related stocks rallied on expectations for a second 'kkanbu' gathering," said Lee Kyung-min, an analyst at Daishin Securities. "Expectations are also rising for cooperation between Nvidia and SK, Hyundai Motor, LG, and Naver."
Among economic indicators, Korea's May exports, released on June 1, and the U.S. May employment report, due June 5, are seen as key variables. The market expects strong semiconductor exports to continue. Lee Sang-jun, an analyst at NH Investment & Securities, forecast that Korea's exports last month rose 52% from a year earlier. Semiconductor exports surged 202.1% year-on-year during the first 20 days of May, indicating that strong memory demand is being sustained.
The U.S. employment data is a key gauge for the future direction of Federal Reserve monetary policy. Market consensus calls for nonfarm payrolls to rise by 95,000 in May with an unemployment rate of 4.3%. A stronger-than-expected reading could weaken expectations for rate cuts, while signs of a labor market slowdown could be favorable for equities.
"The U.S. employment report, along with the Job Openings and Labor Turnover Survey (JOLTS) and the ADP private payrolls report, will influence expectations for Fed monetary policy and rate cuts," said Seo Sang-young, an analyst at Mirae Asset Securities. "Treasury yields and the direction of the stock market could be heavily swayed by the results."
