Seoul: South Korean stocks rebounded by more than 2 percent to settle above the 7,800-point mark on Wednesday as investors scooped up semiconductor and auto shares amid lingering Middle East tensions ahead of the U.S.-China summit. The local currency declined against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index opened 1.69 percent lower but reversed course to close at 7,844.01, up 200.86 points, or 2.63 percent. This surge comes as South Korea reviews a potential role in a U.S. initiative aimed at restoring freedom of navigation in the Strait of Hormuz, following an apparent attack on a South Korean-operated vessel in the crucial waterway.
National Security Adviser Wi Sung-lac addressed the situation, referencing the shutdown of the Strait since U.S.-Israeli strikes on Iran earlier this year. Meanwhile, South Korea's chip giants, including Samsung Electronics Co. and SK hynix Inc., have been experiencing significant gains from the AI-driven semiconductor supercycle. Despite record earnings, there is an ongoing debate over how these profits should be shared among stakeholders.
Cheong Wa Dae announced plans to actively support dialogue between Samsung Electronics and its labor union to resolve a wage dispute. This follows unsuccessful government-led wage negotiations, with sharp differences over performance-based bonuses tied to the company's record-high earnings.
In political developments, the ruling Democratic Party elected Rep. Cho Jeong-sik as its candidate for the next parliamentary speaker. The 63-year-old six-term lawmaker defeated Kim Tae-nyeon and Park Jie-won in a vote by party lawmakers and members, marking a significant political decision for the party's leadership.