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South Korean Shares Close Higher on Overnight Wall Street Gains, Potential US-Iran Negotiations Ahead

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South Korean shares closed higher on Tuesday, in line with overnight gains on Wall Street after the US and Iran agreed to cease attacks in and around the Strait of Hormuz and are expected to hold talks in Qatar.

The benchmark Korea Composite Stock Price Index, or Kospi, rose by 1%, or 81.83 points, to close at 8,476.48. The Kosdaq, however, fell by 0.5%, or 4.39 points, to end at 916.18.

Wall Street rebounded on Monday amid a rally of technology stocks. The Dow Jones Industrial Average added 0.59% to close at a record high, while the Nasdaq Composite rose 2.07%, and the S&P 500 increased 1.18%.

U.S. President Donald Trump said U.S. and Iranian officials will meet in Qatar on Tuesday after Tehran "requested" talks following days of reciprocal attacks that strained their interim agreement, according to AL Jazeera.

However, Iran's Foreign Ministry denied any scheduled meeting with the US but said that it will send a special delegation to Doha to secure the release of frozen assets.

On the corporate front, Samsung Group and SK Group announced investment plans totaling 2,655 trillion won and 1,100 trillion won, respectively, to build regional semiconductor hubs and nationwide AI infrastructure, according to statements from the firms on Monday.

Samsung Electronics (KRX:005930) plans to invest 2,030 trillion won in semiconductor clusters, which comprise the Pyeongtaek Campus and Yongin National Industrial Complex, while allocating 625 trillion won to projects in the Honam, Chungcheong and Yeongnam regions. These will focus on AI chips, robots, batteries, and IT components.

Of that regional allocation, 425 trillion won will be concentrated in the Honam region, where Samsung Electronics will deploy 400 trillion won to build a new semiconductor fabrication plant and a digital-twin-based innovation hub in Gwangju.

Meanwhile, chipmaker SK Hynix (KRX:000660) will invest 1,100 trillion won to build an AI memory production network across Yongin, Cheongju and southwestern Korea. The company aims to complete the fourth fab at its Yongin Semiconductor Cluster by 2033, 12 years ahead of schedule, with total investment in the semiconductor cluster expected to hit 600 trillion won.

Alongside these corporate investments, South Korea unveiled a 550 trillion won joint private-public initiative involving internet firm Naver (KRX:035420) to build 8.4 gigawatts of AI data center capacity by 2029.

Naver did not immediately respond to' request for comment.

Shares of Samsung Electronics added 4% at market close, those of SK Hynix added 2%, while those of Naver fell over 2%.

In other news, Samsung Electro-Mechanics (KRX:009150) secured a supply agreement for multi-layer ceramic capacitors (MLCC) from an undisclosed client, according to a Monday filing with the Korea Exchange.

The contract, valued at 454 billion won, is valid till Dec. 31, 2027.

Shares of Samsung Electro-Mechanics rose nearly 8% at market close.

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