KOSPI

South Korea's Economy Grows in Q1 Amid Rising Chip Demand

South Korea's first-quarter economy expanded amid the growing popularity of artificial intelligence and global chips.The gross domestic product rose 1.7% from the previous quarter, the Bank of Korea said Thursday, beating Reuters' estimate of a 1% growth.The increase in GDP can be mainly attributed to exports of information technology (IT) products, including semiconductors, which jumped 5.1%. The imports of these items were up 3% due to increases in machinery and equipment and in motor vehicles.Major Korean chipmakers have been making huge profits due to the growing demand for AI. SK Hynix (KRX:000660) recorded a 398% year-on-year surge in its first-quarter net income attributable to shareholders to 40.3 trillion won. The company's sales during the period soared 198% year over year to 52.6 trillion won.Meanwhile, facilities investment climbed 4.8% amid increases in machinery and transportation equipment, the BoK said.Construction investment inched 2.8% higher, while government consumption rose by 0.1%.Min Joo Kang, ING's senior economist for South Korea and Japan, said chip exports are expected to gain momentum over the coming months, offsetting the disruptions caused by the Middle East conflict. Total exports climbed 50% year on year, with chip exports soaring 182%, she said, citing April export data. However, South Korea's economy is still facing risks such as higher inflation caused by oil price hikes and energy disruptions."The Korean government implemented a temporary export ban on Naphtha, and Korean companies increased oil and gas imports from outside the Middle East," Kang said. "Despite these measures, manufacturing activity still cannot be sustained at full capacity."Kang said chip exports may begin to slow down in the second half of the year.Krystal Tan, ANZ's Asia economist, also believes the semiconductor industry could help cushion the shock brought by the war in Iran, but growth may also weaken in the coming quarters as the impact of the conflict starts to sink in and the imbalances between supply and demand remain."Importantly, large-scale new memory manufacturing capacity is only expected to begin materializing from the second half of 2027, suggesting the current cycle still has room to run," Tan said. "Continued strength in semiconductor exports would in turn provide Korea with a degree of insulation from external shocks that many other energy-importing economies lack,"

South Korean Shares Open at New High on US-Iran Ceasefire Extension

South Korean shares opened at a fresh high on Thursday, as investor optimism rose after the U.S.-Iran ceasefire was extended indefinitely, while SK Hynix's (KRX:000660) stellar first-quarter earnings buoyed sentiment.The benchmark Korea Composite Stock Price Index, or Kospi, gained 1.1%, or 70.9 points, to open at 6,488.83. The Kosdaq, on the other hand, declined marginally, opening at 1,189.10.Shares of SK Hynix were up nearly 1% in Thursday morning trade after the company posted Q1 net income attributable to shareholders of 40.330 trillion won, up 398% from 8.107 trillion won a year earlier.The South Korean chipmaker's sales jumped 198% year over year to 52.576 trillion won from 17.639 trillion won.

South Korea's Consumer Sentiment Weakens in April

South Korea's composite consumer sentiment index fell to 99.2 in April from 107 in March, according to data released by the Bank of Korea on Thursday.A reading above 100 indicates an improvement in outlook, while a reading under 100 suggests pessimism.Sentiment toward current living standards was down three points to 91, while sentiment on the future outlook shed five points to 92.The outlook for future household income was down three points to 98, while the sentiment for future household spending also shed three points to 108.Optimism regarding current local economic conditions declined by 18 points to 68, and the reading for future domestic economic conditions was 10 points lower at 79.

South Korea's Real GDP Rises 3.6% in Q1, Tops Estimates

South Korea's real gross domestic product increased 3.6% in the first quarter of 2026 from the same period last year, following a 1.6% annual expansion in the prior quarter, an advance estimate by the Bank of Korea indicated on Thursday.According to a median forecast of economists polled by Reuters, the country's real GDP was expected to grow 2.7%.On a quarterly basis, the economy grew by 1.7% in Q1, which also surpassed the Reuters estimate of 1%.Meanwhile, gross domestic income increased 12.3% on an on-year basis and 7.5% on an on-quarter basis in Q1, the release said.

South Korea's GDP Growth Accelerates to 3.6% in Q1

South Korea's Kospi Closes at Fresh High, Crosses 6,400 Points as Investors Eye Q1 Earnings

South Korean shares closed higher on Wednesday, with the country's primary index Kospi closing at a fresh high of over 6,400 points. Investors eyed the upcoming first-quarter corporate earnings despite the uncertainty over US-Iran talks.The Korea Composite Stock Price Index or Kospi rose 29.46 points, or 0.5%, to end at 6,417.93. The Kosdaq also increased by 2.09 points, or 0.2%, to close at 1,181.12.Shares had opened nearly flat in the day after US President Donald Trump announced an indefinite extension to the ceasefire until Iran came up with a unified proposal on a possible agreement.The White House said JD Vance has not yet left for Pakistan and remains in Washington for further policy meetings, Reuters reported. Meanwhile, Iran said it would engage in talks only after the US ends its naval blockade.Iran's envoy Amir Saeid Iravani, in an interview with Rudlaw News Network at the UN HQ, said talks with the US depend on Washington ending alleged ceasefire violations, including a naval blockade.Iravani added that negotiations could resume in Istanbul once the blockade is lifted, stressing Iran is open to dialogue but also prepared for escalation if necessary.In economic news, producer prices in South Korea increased 4.1% in March from a year earlier, the fastest increase since ​February 2023, according to preliminary data from the Bank of Korea on Wednesday.The year-on-year gains were driven by higher costs across all categories except electric power, gas, water and waste, which declined 1.1% in the month.Producer prices across agricultural, forestry & marine products, manufacturing, and services increased 0.5%, 5.9%, and 3.1%, respectively.In corporate news, HD Korea Shipbuilding & Offshore Engineering (KRX:009540) secured an order for an ice-breaking vessel from the Swedish Maritime Administration.The deal is valued at 514.8 billion won. The shipbuilder will deliver the vessel by Aug. 28, 2029, according to a Wednesday filing with the Korean Exchange.Shares of HD Korea Shipbuilding jumped more than 8% at market close.

South Korea's Producer Prices Rise 4.1% in March

Producer prices in South Korea increased 4.1% in March from a year earlier, the fastest increase since ​February 2023, according to preliminary data from the Bank of Korea on Wednesday.The year-on-year gains were driven by higher costs across all categories except electric power, gas, water and waste, which declined 1.1% in the month.Producer prices across agricultural, forestry & marine products, manufacturing, and services increased 0.5%, 5.9%, and 3.1%, respectively, the data showed.On a month-on-month basis, producer prices increased 1.6% in March, according to the data.

South Korean Shares Open Flat Amid Uncertain US-Iran Talks, Ceasefire Extension

South Korean shares opened nearly flat on Wednesday after the US and Iran did not confirm a second round of talks anytime soon.The benchmark Korea Composite Stock Price Index, or Kospi, marginally gained to open at 6,387.57. The Kosdaq, on the other hand, shed 0.18% to begin trading at 1,176.83.US President Donald Trump announced an extension to the ceasefire until Iran came up with a unified proposal on a possible agreement.The White House on Tuesday said that US Vice President JD Vance has not yet departed for Pakistan and remains in Washington for additional policy meetings, according to Reuters.Tehran has not yet given any formal confirmation of joining negotiations with the US in Islamabad.

Kospi Hits All-Time High on Diplomatic Hopes Resurgence

South Korea's primary stock market index Kospi closed at a new high on Tuesday as investors were hopeful about the possibility of a second round of negotiations between the US and Iran to end the conflict in the Middle East.The Korea Composite Stock Price Index or Kospi rose 169.38 points, or 2.7%, to end at 6,388.47. The Kosdaq also increased by 4.18 points, or 0.4%, to close at 1,179.03.The Bank of Korea appointed Hyun Song Shin as its new governor on Tuesday, who took over the top financial role from Rhee Chang-yong, according to a Bank of Korea press release.Hyun will lead the central bank's monetary policy and board over the next four years. He will ​chair his first policy meeting on May 28.In corporate news, SGC Energy (KRX:005090) posted first-quarter net income attributable to shareholders of 4.5 billion won, reversing the attributable net loss of 2.8 billion won a year earlier, according to a Tuesday filing with the Korea Exchange.Sales of the South Korean energy generation company were down 1% year over year to 612 billion won from 618.5 billion won.Shares of SGC Energy rose nearly 4% at market close.In other news, GMB Korea (KRX:013870) signed a contract to supply electric water pumps to Hyundai Motor (KRX:005380) and Kia (KRX:000270), according to a Tuesday filing with the Korea Exchange.The contract, valued at 128.9 billion won, is valid till Dec. 31, 2034.Shares of the motor vehicle parts and accessories company rose 2% at market close, while those of Hyundai Motor added nearly 4% and Kia gained nearly 2%.

Bank of Korea Appoints New Governor

The Bank of Korea appointed Hyun Song Shin as its new governor on Tuesday, who took over the top financial role from Rhee Chang-yong, according to a Bank of Korea press release.Hyun will lead the central bank's monetary policy and board over the next four years. He will ​chair his first policy meeting on May 28.In his inaugural address, Hyun said that the country must strive for "price stability and financial stability through cautious and flexible monetary ​policy operations," amid increased uncertainty, high inflation, and the supply shock caused ​by the Middle East war.Hyun also said that he would focus on the internationalization of the Korean won, as it was crucial to building a monetaryinfrastructure.The central bank will pursue 24-hour foreign exchange market operations and establish offshore won settlement systems. These steps will improve the accessibility and resilience of foreign exchange transactions, making them consistent with international standards. In addition, these efforts will also support won-denominated capital and trade transactions.

South Korean Shares Open Higher on Hopes of Iran Talks

South Korean shares opened sharply higher on Tuesday as signs that Iran may participate in the peace talks with the U.S. emerged.The benchmark Korea Composite Stock Price Index, or Kospi, rose 1.34%, or added 83.45 points, to open at 6,302.54. The Kosdaq also gained slightly to begin trading at 1,186.23.Iran is planning to send a delegation to the next stage of discussions with the U.S., according to various media reports, citing unnamed sources.However, tensions remained high after U.S. President Donald Trump said Monday that the naval blockade of Iranian ports will continue until a deal has been struck with Tehran. The naval blockade, which began a week ago, recently seized an Iranian-flagged cargo ship near the Strait of Hormuz.

Asia Week Ahead: Inflation; Trade Data; and Central Bank Decisions

The week ahead in Asia is packed with releases covering trade, inflation, and central bank updates which could offer markets fresh clues on how the region is navigating the conflict in the Middle East.Monday begins with trade data from New Zealand and Malaysia, as well as the release of China's loan prime rates.Attention then turns Tuesday to New Zealand's first-quarter inflation report, followed by Bank Indonesia's interest rate decision and Japan's March trade figures on Wednesday.Thursday brings another key central bank decision from the Philippines, as well as first-quarter GDP data from South Korea. Flash PMI reports from India, Japan and Australia will also be closely watched.Friday rounds off the week with Japan's March inflation data, as well as Thailand's trade report.Here's what to watch in the week ahead.MONDAY, April 20The week kicked off with the release of trade data from New Zealand and Malaysia.New Zealand recorded a goods trade surplus of NZ$698 million in March, compared with a deficit of NZ$364.7 million in February.Goods exports rose 7.3% to NZ$7.94 billion, while imports rose 9.6% to NZ$7.25 billion.Malaysia's total trade in goods rose 9.3% annually to 273 billion ringgit in March, driven by growth in both exports and imports.Exports increased 8.3% year on year to 148.8 billion ringgit, while imports rose 10.4% to 124.2 billion ringgit.China kept its loan prime rate or LPR, which is the benchmark for new loans, unchanged after posting a better-than-expected economy amid the Middle East conflict.The People's Bank of China held the one-year LPR at 3% and the LPR of five years or more at 3.5%.Economists at ING said the central bank may keep the rates on hold until conditions warrant monetary policy support. The People's Bank of China has maintained the one-year and five-year LPR since May 2025.TUESDAY, April 21New Zealand is due to report its first quarter inflation data.The country's consumer price index is anticipated to rise by 0.8% quarter on quarter and 2.9% year on year, BofA Securities estimated, slightly below the Reserve Bank of New Zealand's revised April forecast of 3%.Headline inflation is driven by soaring fuel prices in March due to the Middle East conflict, with petrol prices surging nearly 19% and diesel by nearly 43% month on month, according to the firm's research.Taiwan will release its export orders data. According to ING, the city state could see a rebound in orders to around 48.1% year on year from 23.8% previously.WEDNESDAY, April 22Indonesia's central bank will meet for its interest rate decision.ING said it expects Bank Indonesia to keep its policy rate at 4.75% despite inflation running above the central bank's 2.5% target. At 3.5%, inflation is still well below the roughly 5% peak in 2022 that triggered aggressive rate hikes, and with growth softening, the central bank is likely to remain on hold, according to ING.Japan's March trade figures will also be in the news. ING said it expects strong Japanese export growth in March thanks to demand for semiconductors and IT products, pushing the country's trade surplus to 1 trillion yen from 44.3 billion yen in the month prior.Elsewhere, South Korea reports producer price inflation data for March.THURSDAY, April 23Another interest rate decision, this time in the Philippines.The island nation's economy is one of the most susceptible to oil shocks in the region, and the Bangko Sentral ng Pilipinas' upcoming decision is "likely to be close" amid the current geopolitical situation in the Middle East, ING said in a preview.Still, the firm said its base case is for the central bank to maintain rates at 4.25%.South Korea's advance estimates for GDP growth for the first quarter will also capture headlines.Most analysts expect a rebound in growth after the economy contracted in the previous quarter, the Wall Street Journal reported.Barclays economist Bumki Son said the economy is likely to show a growth of 1.2% on a quarterly basis and 3% on a yearly basis thanks to stronger exports and a recovery in private consumption and facility investment, the WSJ reported.A consumer confidence report is also due in South Korea.Hong Kong and Singapore will announce Inflation data for March.Singapore's March print will capture the initial impact of the energy shock from the Middle East conflict, the WSJ reported, citing DBS economists. According to Trading Economics, the rate of price increase could quick to 1.5% year on year from the 1.2% witnessed in February.In Hong Kong, Trading Economics expects inflation to rise marginally to 1.8% on the year from the 1.7% recorded in February.Hong Kong will also release unemployment data the same day.A number of macro releases are expected in Taiwan, covering March retail sales, industrial production, and unemployment.Similar to its export orders, ING said it expects Taiwan's industrial production to rebound to 25.7% year on year from the 17.8% growth recorded in the month prior.On the activity front, S&P Global releases its flash PMI reports covering manufacturing, services, and composite activity in India, Japan, and Australia.FRIDAY, April 24Markets will await March inflation data from Japan.Core inflation, which excludes fresh food but includes energy, is expected to cool to a rate of 1.8% year on year from the 2% witnessed in February, according to a consensus compiled by Trading Economics.According to ING, efforts by Japan's government to stabilize gasoline prices should keep both headline and core inflation rates below 2%.March inflation data will also be due in Macao, which also reports unemployment rate the same day.Trading Economics estimates that March inflation could clock in at 1.2% year on year, modestly higher than the 1.16% witnessed in February.Unemployment, meanwhile, is expected to rise to 1.8% from 1.7% in the month prior, Trading Economics estimated.In Thailand, trade figures for March will be due.Trading Economics expects the country the post a trade deficit of $2 billion for the month, a reversal from the $2 billion surplus in February.A pair of reports covering business and consumer confidence in the first quarter will be due in the Philippines.A business confidence report covering the second quarter will similarly be made available in Hong Kong.

South Korean Shares Open Flat as US-Iran Tensions Continue

South Korean shares opened flat with a positive bias on Monday as tensions between the U.S. and Iran continue.The benchmark Korea Composite Stock Price Index, or Kospi, marginally rose to open at 6,213.92. The Kosdaq also gained slightly to begin trading at 1,167.10.Iran's military command, Khatam al-Anbiya, on Monday accused the U.S. of violating a two-week ceasefire after the U.S. Navy destroyer USS Spruance intercepted an Iranian-flagged cargo vessel called Touska near the Strait of Hormuz.In a post on Truth Social on Sunday, U.S. President Donald Trump said the vessel ignored warnings and was seized by U.S. Marines, adding that the vessel was under US Treasury sanctions over alleged past "illegal activity."

South Korean Shares Snap Three-Day Winning Streak Amid IRGC Threats

South Korean shares snapped a three-day winning streak on Friday to close lower as escalating threats from Tehran overshadowed US President Donald Trump's talk of an imminent peace deal.The Korea Composite Stock Price Index or Kospi fell 34.13 points, or 0.6%, to end at 6,191.92. The Kosdaq increased by 7.07 points, or 0.6%, to close at 1,170.04.In economic news, the U.S. dollar accounted for 84.2% of export settlement for South Korea in 2025, marking the East Asian country's largest export settlement currency for the year, the Bank of Korea said in a Thursday release.The euro represented 5.9%, the South Korean won took up 3.4%, and the Japanese yen represented 1.9% of the country's export settlement currencies last year, the release said.In corporate news, HD Korea Shipbuilding & Offshore Engineering (KRX:009540) secured an order for four very large gas carriers (VLGCs) from an unnamed Middle Eastern shipping company.The deal is valued at 674.7 billion won. The shipbuilder will deliver the vessels by Nov. 30, 2029, according to a Friday filing with the Korean Exchange.Shares of HD Korea Shipbuilding & Offshore Engineering rose nearly 3% at market close.

US Dollar South Korea's Largest Export Settlement Currency in 2025

The U.S. dollar represented 84.2% of settlement currencies for Korean exports in 2025, marking the East Asian country's largest export settlement currency for the year, the Bank of Korea said in a Thursday release.The euro represented 5.9%, the South Korean won took up 3.4%, and the Japanese yen represented 1.9% of the country's export settlement currencies last year, the release said.

South Korean Shares Open Slightly Higher on US-Iran Deal Optimism

South Korean shares opened slightly higher on Friday after U.S. President Donald Trump said that the U.S. is "very close" to striking a deal with Iran and another meeting could take place between the two countries this weekend.The benchmark Korea Composite Stock Price Index, or Kospi, marginally rose to open at 6,227.33. The Kosdaq also gained 3.8 points to start trading at 1,166.78.Trump said Iran has agreed not to develop nuclear weapons, adding that the ongoing agreement could extend beyond two decades.Meanwhile, U.S. Central Command claimed U.S. forces forced 14 vessels to turn back within 72 hours of the naval blockade of Iranian ports.Trump also announced a 10-day ceasefire between Israel and Lebanon on Thursday. He said that Israel's prime minister and Lebanon's president could have a meeting ⁠in Washington over ⁠the ⁠next week or two.

S&P Global: Oil Shock Could Undermine Asian Pacific Bonds

About one-seventh of Asian Pacific corporate bonds outstanding could come under pressure if the Persian Gulf war and higher oil prices persist, S&P Global reported Thursday."A prolonged oil shock could undermine the credit quality of 15% of rated Asia-Pacific corporates tested under our downside scenario," advised S&P Global. "That's up from 9% under our base case of a quicker end to war."The Asia-Pacific is more exposed to a Middle-East related energy shock than most other regions, and vulnerable to "disruptions to energy and raw material supplies, demand destruction, margin compression, and working capital volatility," advised S&P Global.Nearly 90% of the crude oil shipped through the Strait of Hormuz is bound for Asia, and Persian Gulf petroleum accounts for about 40% of Asia-Pacific's energy imports, noted the credit-rating agency.In Asia, industries and enterprises that rely on jet fuel, diesel, and liquified petroleum gas (LPG) "face the highest shortage risk," reported S&P Global.Business sectors most affected include chemicals, downstream oil and gas, airlines, automobile-manufacturing, engineering and construction, and building materials.In terms of nations, South Korea, Japan, and mainland China "have largely mitigated near-term supply disruption," through use of adequate reserves, but "other countries have had to announce various measures to manage a potential energy supply crunch," said S&P Global.Not only corporates, but some sovereign bonds could be affected if high prices persist.The Philippines sovereign credit-rating was reduced to BBB+ "stable" from "positive" last week, due to exposure to oil shocks, said S&P Global.

South Korean Shares Close Higher for Third Day on Possible US-Iran Deal; HD Hyundai Heavy Industries Closes 4%

South Korean shares closed higher for a third straight day on Thursday, with the primary index Kospi ending the trading session over 6,200 points as optimism grew around a possible US-Iran deal.Stocks also tracked overnight gains on Wall Street after U.S. President Donald Trump said the Iran war was "very close to over" in an interview that aired on Wednesday.The Korea Composite Stock Price Index or Kospi rose 134.66 points, or 2.2%, to end at 6,226.05. The Kosdaq also increased by 10.54 points, or 0.9%, to close at 1,162.97.In corporate news, HD Korea Shipbuilding & Offshore Engineering (KRX:009540) secured an order for two LPG carriers from an unnamed European shipowner.The deal is valued at 346.6 billion won. The shipbuilder will deliver the vessels by April 30, 2029, according to a Thursday filing with the Korean Exchange.Shares of HD Korea Shipbuilding & Offshore Engineering rose nearly 2% at market close.In other news, HD Hyundai Heavy Industries (KRX:329180) won an order for pure car and truck carriers from a European shipping company, according to a Thursday filing with the Korean Exchange.The deal is valued at 398.5 billion won. The shipbuilder will deliver the vessels by March 31, 2029.Shares of HD Hyundai Heavy Industries rose 4% at market close.

South Korean Shares Open Higher on US-Iran Deal Optimism

South Korean shares opened higher on Thursday, tracking overnight gains in U.S. stocks as optimism around the possibility of a US-Iran deal rose.The benchmark Korea Composite Stock Price Index, or Kospi, rose 58.09 points or 0.95% to open at 6,149.49. The Kosdaq also gained 10.57 points or 0.91% to start trading at 1,163.Reuters reported that Brent crude declined 44 cents (0.5%) to $94.49 a barrel, while U.S. WTI crude shed 70 cents (0.8%) to $90.59 a barrel on hopes of easing U.S.-Iran tensions.U.S. President Donald Trump said the Iran war is "very close to over" in an interview that aired on Wednesday, despite the leader of Iran's joint military command threatening to bring trade to a standstill in the Gulf region if the U.S. kept blocking Iranian ports.In addition, Iranian official Mohsen Rezaei warned that any U.S. invasion would lead Iran to capturing American troops as hostages and strike U.S. naval vessels enforcing the Strait of Hormuz blockade.

Market Chatter: South Korean AI Chip Firm DeepX Eyes 2026 IPO, May List in the US

South Korean on-device AI chip company DeepX is planning an initial public offering (IPO) after concluding its ongoing funding round ​in the ​first ⁠half of 2026, Reuters reported Wednesday.DeepX plans to appoint banks for its IPO, and may also seek a US listing after its domestic listing, according to Reuters.DeepX makes semiconductor chips that run AI tasks on devices, and has partnered with companies such as Hyundai Motor (KRX:005380) and Baidu (HKG:9888), the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)