Korean Stocks Surge Record 14% as AI Trade Optimism Returns

South Korean stocks posted their biggest single-day jump on record Friday, bouncing back sharply after a rough stretch this week, as renewed confidence in artificial intelligence spending lifted major technology shares.

Chip Stocks Lead the Rally

The benchmark Kospi index rose as much as 14%, the largest gain in its history.

SK Hynix surged as much as 28%, boosted partly by a rare personal share purchase from SK Group Chairman Chey Tae-won, while Samsung Electronics climbed 26%. The rebound followed a steep 17% drop over the previous three sessions, driven by worries over rising debt at major tech companies and growing competition from Chinese firms.

Volatility Tied to Leveraged Products

This year’s AI-driven rally has grown increasingly unstable since leveraged products launched in May. Shawn Oh, head of Korea cash equities at NH Investment & Securities, said the recent selloff, fueled by deleveraging and liquidity pressures, appears to be settling down.

Chairman’s Purchase Signals Confidence

Investors took comfort from Chey’s purchase of 3,620 SK Hynix shares on the open market, his first direct personal investment in the company, worth roughly 4.8 billion won, or about $3.2 million. Analysts viewed the move as a strong signal of confidence in the chipmaker’s long-term outlook following the sharp decline.