Since the New Year, the KOSPI has renewed its record high for three straight sessions, extending a steep rally. After breaking above the 4,300 level on the 2nd, the KOSPI topped 4,400 on the 5th and then even broke through 4,500 on the 6th in a powerful charge.
On the day, strong buying in shipbuilding, defense and securities stocks drove the index higher. Artificial intelligence (AI) and semiconductor stocks, which had led the rally so far, were mixed by name, showing a choppy trend.
The KOSPI closed at 4,525.48, up 67.96 points (1.52%) from the previous session. The index opened at 4,446.08 and slipped below the 4,400 level intraday on foreign selling, but turned higher as retail and institutions bought. Around 1:40 p.m., it broke the 4,500 level for the first time ever and kept rising.
In the main board, retail investors were net buyers of 599.2 billion won. Foreign investors, who had been making large net purchases every day except Dec. 30 over the past eight sessions, flipped to net sellers and offloaded 618.8 billion won. Institutions also net sold 69 billion won, but brokerages were net buyers of 167 billion won.
By sector, continued buying in shipbuilding, defense and securities lifted large caps broadly. HD Hyundai Heavy Industries rose 30,700 won (7.21%) to close at 550,000 won from the previous session. Hanwha Ocean (1.61%), HD Korea Shipbuilding & Offshore Engineering (3.24%) and Samsung Heavy Industries (1.43%) also advanced. In defense, Korea Aerospace Industries (9.41%) and LIG Nex1 (5.66%) were strong, while in securities, Mirae Asset Securities (12.55%), reflecting excitement over SpaceX, finished higher.
Semiconductor stocks were mixed depending on flows. SK hynix erased early losses as foreigners net bought 231 billion won, and closed up 30,000 won (4.31%) at 726,000 won. Samsung Electronics ended at 1,389,000 won, up 800 won (0.58%), as foreigners sold 1.5132 trillion won.
The KOSDAQ index closed at 955.97, down 1.53 points (0.16%) from the previous session. After starting at 959.38, the KOSDAQ widened losses as foreigners turned to selling during the session, but retail investors bought 380 billion won, trimming the decline.
Among top KOSDAQ market cap names, moves were mixed. ABL Bio plunged more than 5%, and Kolon TissueGene (3.62%), Rainbow Robotics (3.46%), Sam Chun Dang Pharm (2.56%) and Peptron (1.55%) fell. Alteogen (1.17%), EcoPro BM (1.78%) and EcoPro (3.67%) ended higher.
As the KOSPI rally powers ahead, brokerages are collectively revising up the index targets (bands) they released at the start of the year. Yuanta Securities Korea raised its 2025 KOSPI range to 4,200–5,200 points, and Kiwoom Securities also lifted its range to 3,900–5,200 points.
Kim Yong-gu, an analyst at Yuanta Securities Korea, said, "Upward revisions to expectations for semiconductor earnings have been the direct factor changing the 2026 KOSPI outlook," adding, "Samsung Electronics' 2025 operating-profit consensus, which was only 4.62 trillion won at the end of September last year, has surged to 9.08 trillion won as of the 5th, and SK hynix likewise jumped from 4.78 trillion won to 8.05 trillion won over the same period."