South Korea’s stock market opened higher on Monday after recent volatility, as investors returned to major technology and semiconductor shares following renewed optimism surrounding artificial intelligence demand and global chip investment. The Kospi index rebounded during early trading after sharp swings last week triggered concerns about overheating valuations in the country’s rapidly rising tech sector.
Technology giants lead the rebound
Early gains on the Korea Exchange were led by semiconductor manufacturers and AI-related technology companies. Investor interest remained focused on memory chip producers and companies connected to global data-centre expansion and artificial intelligence infrastructure.
South Korea’s Kospi index has become one of the world’s strongest-performing major stock markets during 2026, driven largely by soaring valuations in technology and semiconductor companies.
Recent volatility, including a sharp pullback after the index briefly crossed the 8,000-point level last week, highlighted growing concerns regarding speculative positioning and market concentration.
AI investment boom fuels market momentum
Global demand for advanced AI hardware continues to support South Korea’s export-driven economy. Investors remain optimistic that semiconductor demand linked to artificial intelligence systems, cloud infrastructure and next-generation computing will continue accelerating through the remainder of the year.
Samsung Electronics and SK Hynix remain central drivers of market sentiment, with both companies benefiting from strong global memory chip demand and expanding AI infrastructure investment.
Analysts also pointed to improving investor sentiment following proposed market reforms aimed at increasing transparency and reducing the long-standing “Korea discount” associated with South Korean equities.
Volatility remains a key risk
Despite Monday’s stronger opening, analysts warned that the market remains vulnerable to sharp corrections following the extraordinary pace of gains recorded during recent months.
Geopolitical tensions, energy costs and shifts in global technology demand remain important risks for South Korea’s economy, which remains heavily dependent on exports and semiconductor production.
Investors are expected to watch US technology markets closely this week for additional signals regarding the sustainability of the global AI investment cycle.
Newshub Editorial in Asia – May 18, 2026
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