South Korean stocks closed higher on Thursday on strong institutional buying, which offset retail selling amid a reassessment of the demand outlook for the AI sector.
The benchmark Korea Composite Stock Price Index, or Kospi, rose by 0.6%, or 45.12 points, to close at 7,291.91. The Kosdaq also increased by 1.2%, or 9 points, to end at 794.
In economic news, the International Monetary Fund raised its South Korea economic growth estimate for 2026 as strong external demand for semiconductors offset the negative impact of the Middle East conflict.
In its World Economic Outlook update published late Wednesday, the IMF expects the South Korean economy to grow 2.6% in 2026, up 0.7 percentage point from the April estimate. For 2027, the growth estimate moved 0.4 percentage points higher to 2.5%.
In corporate news, SK Hynix's (KRX:000660) $28 billion Nasdaq IPO is said to be more than seven times oversubscribed, according to a Reuters report on Thursday citing people familiar with the matter. Each ADR represents one-tenth of a common share, according to the report.
Shares of the company jumped nearly 6% at market close.