Share prices jumped in South Korea on Friday, partly reversing a three-day rout that wiped hundreds of billions of dollars off the value of the country's stock market. The benchmark Kospi index was almost 17% higher in afternoon trading, driven by chip makers SK Hynix and Samsung Electronics.
Why did South Korean shares rebound?
The recovery came after earnings updates from US technology giants Amazon and Microsoft helped boost optimism over the huge amounts of money being invested in artificial intelligence (AI). South Korean regulators have also announced measures aimed at curbing this week's sell-off.
Surging chip stocks also helped push markets in Japan and Taiwan higher.
How did SK Hynix and Samsung perform?
SK Hynix, which is a major supplier to leading AI chip firm Nvidia, saw its shares gain more than 17%, while Samsung was up by 23%.
Both firms had seen their stock market value slump this week as a sell-off in artificial intelligence-related stocks deepened.
Investors had become concerned over the hundreds of billions of dollars being invested in AI by big technology firms.
Why has the market been so volatile?
In recent months stock market trading has been particularly volatile in South Korea as it has attracted large numbers of retail investors.
South Korea's tech-heavy Kospi has been halted multiple times this year under a stock market mechanism known as a circuit breaker, which is designed to calm panic selling.
The index had more than doubled in value this year and despite a series of big falls since hitting a record high in mid-June it is still 50% higher than it was at the end of 2025.
Key Facts
- The Kospi was almost 17% higher in afternoon trading on Friday.
- Share prices had fallen in a three-day rout that wiped hundreds of billions of dollars off South Korea's stock market.
- SK Hynix gained more than 17% and Samsung Electronics rose 23%.
- Amazon and Microsoft earnings updates helped improve sentiment around AI investment.
- The Kospi has been halted multiple times this year by circuit breaker measures.
