Kospi hits record high on chip rally

South Korea's benchmark Kospi stock index surged to a record high of 7,876.60 on Monday, May 11, as chipmakers extended gains amid AI-driven optimism, with trading curbs activated due to the sharp rise. Samsung Electronics rose more than 5 percent and SK Hynix gained over 10 percent, with both hitting record levels. The index had risen 85 percent so far this year following a 76 percent gain last year, making South Korea the world's best-performing stock market. South Korea's exports rose 43.7 percent in the first 10 days of May from a year earlier, led by a 150 percent surge in chip sales. The rally was led by retail investors with net purchases totaling 1.2 trillion won, while foreign investors were net sellers. The Philadelphia Semiconductor Index rose 5.5 percent on Friday, with Micron Technology surging 15.5 percent. Analysts at Kiwoom Securities noted profit-taking pressure was rising among all investor groups and warned of potential short-term volatility in semiconductor stocks as the Kospi extends gains. The market surge comes as South Korean brokerages position themselves to capture foreign retail demand through expanded omnibus account services. Samsung Securities and Hana Securities have emerged as early frontrunners in launching the system, which allows overseas investors to trade Korean equities through their existing home-market brokerages. Samsung Securities partnered with Interactive Brokers, one of the world's largest online brokerages with roughly 4.65 million client accounts, while Hana Securities integrated Korean stock data into Hong Kong brokerage Futu Securities. Industry sources estimate up to 10 million additional foreign retail investors could enter the Korean market through omnibus accounts, potentially expanding Korea's foreign investor base at a time when the Kospi extends its record rally above 7,500.