Overview
- The KOSPI swung from a near‑9 percent tech-led plunge to close 0.73 percent higher on Tuesday after massive selling forced the earlier drop.
- Trading extended the recovery on Wednesday morning with the index up about 6.06 percent to roughly 7,272 and Samsung Electronics and SK hynix posting double‑digit and high single‑digit gains respectively.
- President Trump dropped a proposed 20 percent ‘‘reimbursement’’ fee on cargo through the Strait of Hormuz and said he would pursue trade and investment deals instead, a policy move that eased one immediate geopolitical risk.
- Domestic institutions and foreign investors were net buyers while retail investors were net sellers, and the Korean won strengthened modestly as institutional flows supported the rally.
- Because a few large exporters dominate the KOSPI and uncertainty over U.S.‑Iran tensions and the AI sector remains, volatility is likely to stay high and investors should watch shipping security developments, U.S. inflation data and upcoming tech earnings for fresh market direction.