Samsung Electronics and SK Hynix ended the year at record highs, underscoring the central role of semiconductors in a historic rally that pushed South Korea’s stock market to its strongest annual performance in decades.
Shares of Samsung Electronics rose 0.33% on the final trading day to close at about $92, while SK Hynix gained 1.72% to finish near $501, both the highest closing levels on record. Intraday, Samsung briefly traded above $93, and SK Hynix touched roughly $507.
The session marked the first time the two companies simultaneously crossed levels closely watched by local investors—often referred to as “$90 Samsung” and “$500 Hynix.” For the year, Samsung shares climbed 125.4%, while SK Hynix surged 274.4%, far outpacing the broader market.
The gains reflect growing confidence that the global memory-chip downturn has ended. Shares of U.S. chipmaker Micron Technology hit a record high overnight in New York, reinforcing expectations of a cyclical recovery and improving earnings momentum across the sector. Investors are increasingly betting on stronger fourth-quarter results from both Korean chipmakers.
Policy signals from Washington added support. The U.S. Commerce Department recently indicated it would permit limited exports of semiconductor manufacturing equipment to Chinese plants operated by South Korean firms, easing concerns over supply-chain disruptions stemming from U.S.-China technology restrictions.
Even so, the broader market paused. South Korea’s benchmark Kospi index slipped 0.15% to close at 4,214.17, as some investors took profits after a sharp run-up. The index opened lower and briefly approached its all-time intraday high before retreating.
Measured over the full year, however, the performance was exceptional. The Kospi rose 75.6% in 2025, climbing from around 2,400 at the start of the year to above 4,200, marking the first time the index has sustained levels above 4,000.
According to market data, the gain was the strongest among major global equity markets, including those in G20 and OECD countries. It ranks as the Kospi’s third-best annual performance on record, trailing only the currency-driven rally of 1987 and the dot-com boom of 1999. By contrast, stock markets in the U.S., China and Japan posted gains largely in the 10% to 20% range.
Bloomberg recently cited South Korea as one of the “11 major trades to watch in global markets in 2025,” pointing to growing investor optimism around President Lee Jae-myung’s pledge to lift the Kospi to 5,000.
“Political leaders rarely set explicit stock-index targets,” Bloomberg wrote. “The goal initially attracted limited attention, but Wall Street banks are now increasingly confident the 5,000 level could be reached as early as 2026.”
With semiconductors driving earnings, the currency strengthening and macroeconomic conditions improving, South Korea’s equity market is entering the new year as one of the world’s standout performers.
