South Korea's stock market soared on Wednesday, with the benchmark KOSPI index closing up 5.04% at 5,925.03 points, reaching a near three-week high, after President Lee Jae-myung pledged to advance capital market reforms, boosting investor confidence.
The market surge was accompanied by a significant inflow of foreign capital. Data shows that foreign investors made net purchases of about 880 billion won on the day. Meanwhile, the Korean won slightly appreciated against the US dollar to 1,485.9.
On the stock front, the semiconductor sector led the gains. Samsung Electronics rose by 7.53%, and SK Hynix increased by 8.87%, reflecting market optimism about the prospects for AI-driven chip demand.
On the policy front, the Financial Services Commission of Korea announced it would implement measures to restrict dual listings of parent and subsidiary companies and expand market stabilization tools if necessary.
In the bond market, the yield on South Korea's three-year government bonds fell to 3.256%, and the 10-year yield dropped by 3.4 basis points to 3.646%, indicating an improvement in risk appetite.
