The KOSPI closed above 4,100 for the first time ever on October 31, 2025. Amidst the continued rise in Korea's leading index, fueled by the strength of technology stocks and expectations of collaboration with global companies, the move toward stronger cooperation between Korean and American companies in the field of artificial intelligence (AI) is believed to have driven the market's rise.
On this day, the KOSPI closed at 4,107.50, up 20.61 points (0.50%) from the previous trading day, hitting the 4,100 mark for the first time. While the index started slightly lower early in the session due to the decline in the U.S. stock market, it subsequently rebounded during the session, boosted by strong earnings from major companies and growing expectations for collaboration in the AI sector. Unlike the previous day, when it briefly crossed the 4,100 mark during the session but failed to maintain the level at the closing price, this time the index maintained its upward momentum.
The recent stock market rally is directly driven by AI collaborations between the US semiconductor company NVIDIA and major Korean conglomerates. NVIDIA CEO Jensen Huang announced on the 31st a plan to supply a total of 260,000 graphics processing units (GPUs) in cooperation with the Korean government, Samsung Electronics, Hyundai Motor Group, SK Group, and Naver Cloud. This has led to assessments that Korea has gained an advantageous position in securing GPUs, a global shortage. This is being interpreted as a sign that Korea is becoming a more active player in the global AI ecosystem.
Furthermore, with the news of an unofficial meeting between CEO Hwang, Samsung Electronics Chairman Lee Jae-yong, and Hyundai Motor Group Chairman Chung Eui-sun the previous day, expectations for concrete cooperation plans between NVIDIA and Korean companies have grown even higher. The fact that CEO Hwang is scheduled to personally announce the details of projects with Korea at a special session at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju after the market close that day also contributed to boosting investor sentiment.
Looking at investment supply and demand, institutional investors drove the upward trend in the stock market that day, net buying 815.1 billion won. Conversely, foreign and individual investors net sold 605.2 billion won and 201.6 billion won, respectively. However, foreign investors net inflowed 117.7 billion won into the KOSPI 200 futures market. The KOSDAQ market also rose, recovering the 900 level. Rainbow Robotics' stock price surge was driven by CEO Hwang's suggestion that positive news from the robotics sector might also be announced.
Not only technology stocks, but also AI-related stocks in general rose, particularly those with high market capitalizations such as Samsung Electronics, Hyundai Motor, and Naver. However, some secondary battery and defense industry stocks showed weakness, which is interpreted as profit-taking following the previous upward trend.
This trend is likely to strengthen the strategic position of Korean companies in the global AI supply chain. In particular, if AI infrastructure projects jointly promoted by the government and private companies materialize, this could lead to overall industrial advancement and a positive reevaluation of the stock market. However, global economic uncertainty and changes in foreign supply and demand could hinder stock price growth, requiring continued monitoring.
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