South Korea’s benchmark index pares weekly losses to just over 1% after a sharp recovery in semiconductor shares.
South Korea’s KOSPI index climbed 17% in Friday’s session, erasing most of this week’s losses as tech stocks rebounded strongly. The rally was led by Samsung Electronics and SK Hynix, which surged 25% and nearly 30%, respectively, accounting for over half the index’s gains.
The index had plunged earlier in the week, wiping out months of gains amid heavy retail participation and concentrated bets on AI-driven stocks. This week’s decline left the KOSPI down just over 1% for the week, a sharp reversal from its midweek lows.
The recovery followed improved sentiment in global markets, particularly on Wall Street, which helped stabilize investor confidence. Analysts noted the risks of excessive retail leverage in a volatile sector, warning of potential liquidity strains during corrections.