South Korea Stocks Jump As AI Optimism Returns Strongly This Week, Pushing Local Markets Higher as Investors Focus on Technology Demand, Exports, and Power-Related Growth. As a result, confidence improved after recent concerns about high valuations, while fresh data and company news supported a broad rally.
On Monday, the KOSPI rose more than 2%, while the KOSDAQ gained around 1.5%. Meanwhile, investors welcomed stronger December trade figures. Exports increased by nearly 7% year on year, while imports grew less than 1%. Therefore, the country posted a solid trade surplus, which helped calm earnings worries in an economy driven by chips and electronics.
At the same time, AI-linked shares led the move. Samsung Electronics jumped close to 4% after renewed interest in its devices and advanced chips. Additionally, memory chip makers continued to benefit from the global demand for high-performance semiconductors used in AI servers and data centers. Because of this trend, analysts expect earnings growth to stay strong into next year.
Moreover, power and infrastructure stocks gained attention. Investors believe AI data centers need massive electricity support. As a result, companies involved in grids, transformers, and nuclear energy saw steady inflows. Analysts say there is no fast carbon-free alternative, so these firms remain key to long-term growth.
Defense stocks also supported the rally. Meanwhile, higher global military spending increased orders for South Korean arms exporters. These companies attract buyers because they deliver faster and at a lower cost than many rivals. Consequently, their shares posted some of the strongest gains of the year.
However, not all sectors shared the upside. Game developers lagged due to weak overseas demand and strong competition from China. In addition, electric vehicle supply chain firms struggled as global EV demand slowed and pricing pressure increased.
Key Market Drivers (Easy View):
- AI demand: Boosting chips, power, and infrastructure
- Trade surplus: Supporting earnings outlook
- Defense exports: Driving new global contracts
- Consumer brands: K-beauty shares gaining overseas fans
- Weak areas: Games and EV-related stocks
Looking ahead, strategists expect leadership to broaden beyond semiconductors. Therefore, financials, power utilities, and infrastructure shares could gain more weight in 2026. Some analysts even see the KOSPI moving toward 5,000 if earnings upgrades continue and policy support stays steady.
In conclusion, South Korea Stocks Jump As AI remains the key story shaping market direction. As long as technology investment, power demand, and exports stay strong, investors believe South Korean equities can keep climbing despite global risks.
