Korea's Kospi jumps 4.6% as chip rally eases volatility

South Korea's benchmark Kospi index surged 4.6 percent on Friday, June 12, 2026, capping a week of extreme volatility driven by global technology sentiment and geopolitical developments. The rally was fueled by renewed investor confidence in semiconductor stocks and a statement from U.S. President Donald Trump indicating progress toward a peace deal with Iran.

The week began with a sharp downturn, as the Kospi plunged over 8 percent on Monday, June 8, mirroring a selloff in U.S. tech stocks. The index swung dramatically throughout the week before its strong Friday finish, ending the week down 0.5 percent overall. The market's heavy exposure to the global artificial intelligence trade, particularly through semiconductor giants Samsung Electronics and SK Hynix, has made it one of the world's best-performing and most volatile major indexes, having more than tripled since the start of 2025.

On Friday, Samsung Electronics surged over 13 percent before closing 7.9 percent higher, while SK Hynix gained as much as 9.6 percent before ending 2.3 percent up. Analysts at KB Securities noted that much of the valuation adjustment in semiconductor stocks had already occurred during the recent...