Seoul: South Korea's stock market experienced a significant milestone on Friday as the Korea Composite Stock Price Index (KOSPI) briefly touched the historic 8,000-point mark, though it ultimately faced a setback due to a foreign sell-off. The index opened slightly lower but soon gained momentum to hit 8,046.78 before plummeting 488.23 points, closing at 7,493.18.
According to Yonhap News Agency, the foreign sell-off exceeded 5 trillion won (US$3.35 billion) and was concentrated in the tech and auto sectors, which had seen sharp rises. The KOSPI's ascent to 8,000 points came shortly after surpassing the 7,000-point threshold on May 6, following a record-breaking five-session run fueled by optimism in the artificial intelligence (AI) sector, particularly in semiconductor shares.
Earlier in the week, the local stock market took a pause on Tuesday due to stagnant U.S.-Iran peace talks, but Seoul shares rebounded to reach a new high of 7,981.41 on Thursday. The KOSPI had previously broken through significant milestones, crossing the 3,000 mark in June 2025, 4,000 in October 2025, 5,000 in January, and 6,000 in February.
The rally in Seoul shares was supported by gains on Wall Street, where AI-related stocks performed well, and a favorable outcome from the U.S.-China summit. The Nasdaq composite rose 0.88 percent, the S and P 500 increased by 0.77 percent, and the Dow Jones Industrial Average climbed 0.75 percent.
Investor sentiment improved after U.S. President Donald Trump and Chinese President Xi Jinping agreed on critical issues regarding Iran and the Strait of Hormuz during their Beijing summit. Stocks like Nvidia, Cisco Systems, Broadcom, and TSMC saw significant increases in anticipation of enhanced U.S.-China cooperation.
However, concerns resurfaced regarding the Middle East crisis when President Trump indicated impatience with Iran, urging a peace agreement with Washington. This led to profit-taking among large-cap tech shares following the KOSPI's brief 8,000-point achievement.
Samsung Electronics, the market's largest-cap stock, fell 8.61 percent to 270,500 won, amid labor union threats to strike despite management's offer to resume talks. SK hynix, SK Square, Samsung C and T, Doosan Enerbility, and Hanwha Aerospace also experienced declines, reflecting a broader market downturn.