Kospi surges 6% to reclaim 6,000 on SK hynix record profit, massive shareholder returns

The Kospi surged more than 6 percent on Wednesday to reclaim the 6,000 level for the first time in 10 trading sessions, driven by SK hynix's record-breaking quarterly earnings and a sweeping shareholder return announcement. SK hynix and Samsung Electronics jumped more than 10 percent and 9 percent, respectively, leading the index higher. Foreign and institutional investors combined for net purchases of more than 1.77 trillion won ($1.34 billion), and a buy-side sidecar was triggered on the KOSPI market for the second consecutive day.

According to Korea Exchange, the Kospi closed up 374.10 points, or 6.63 percent, at 6,012.44 on Wednesday — its first close above 6,000 in 10 trading sessions. The day's point gain was the largest since Aug. 20, and the percentage gain was the largest since July 31.

The index opened up 125.51 points, or 2.23 percent, at 5,763.85 and extended gains throughout the session, touching an intraday high of 6,032.28, a rise of 6.99 percent.

The sharp rally triggered a buy-side sidecar — a temporary suspension of program buy orders — for the second straight day, following Tuesday. At 9:54 a.m., the KOSPI 200 futures index rose 45.64 points, or 5.17 percent, to 928.02 from the previous close, halting program buy orders for five minutes.

On the KOSPI market, foreign investors and institutions net bought 816.2 billion won and 960.2 billion won, respectively, while retail investors net sold 1.8 trillion won.

Samsung Electronics closed up 20,000 won, or 9.01 percent, at 242,000 won. SK hynix rose 146,000 won, or 10.89 percent, to close at 1.49 million won.

The twin gains in the two semiconductor heavyweights were attributed to SK hynix's strong third-quarter results. SK hynix posted quarterly revenue of 104.6 trillion won and operating profit of 83.3 trillion won, both all-time quarterly records. The operating profit exceeded the market consensus of around 77 trillion won.

A large-scale shareholder return plan also lifted investor sentiment. SK hynix said it plans to pursue shareholder returns of around 100 trillion won for fiscal year 2026, including cash dividends of more than 30 trillion won and share buybacks and cancellations of more than 60 trillion won — the latter incorporating an existing 40 trillion won commitment.

Samsung Electronics is also pursuing a shareholder return program of up to 110 trillion won. The company plans to approve a cash dividend of 30 trillion won at a board meeting Thursday, timed to coincide with the release of its finalized third-quarter results, with the remainder of the shareholder return plan to be disclosed when first-quarter earnings are announced next year.

News that US AI company Anthropic is pursuing an initial public offering and has signed a semiconductor supply agreement worth $63 billion also fueled expectations for expanded AI infrastructure investment. As optimism over memory chip demand revived, buying spread broadly across domestic semiconductor stocks.

Among other large-cap stocks, Samsung Electronics preferred shares rose 11.16 percent, SK Square gained 11.11 percent, Samsung Electro-Mechanics advanced 8.74 percent, Samsung Life Insurance climbed 8.24 percent, KB Financial Group added 4.40 percent, Hyundai Motor rose 2.07 percent, and LG Energy Solution edged up 0.92 percent. Samsung Biologics slipped 0.07 percent.

The Kosdaq also closed higher, rising 27.45 points, or 3.69 percent, to 771.28.

On the Kosdaq market, institutions net bought 224.7 billion won, while foreign investors and retail investors net sold 184.9 billion won and 31.6 billion won, respectively.

Among Kosdaq large caps, Rainbow Robotics posted a double-digit gain of 14.51 percent. Semiconductor-related stocks also rallied — Simtech rose 8.87 percent, Wonik IPS gained 6.18 percent, Jusung Engineering advanced 5.61 percent, EO Technics climbed 5.32 percent, and Leeno Industrial added 3.42 percent. Ecopro rose 3.09 percent, Alteogen gained 2.97 percent, Ecopro BM advanced 2.85 percent, and HLB added 1.88 percent.

"SK hynix's strong results and the expansion of long-term supply contracts have reaffirmed a solid outlook for memory chip demand and earnings growth," said Lee Gyeong-min, an analyst at Daishin Securities. "The large-scale shareholder return program is expected to strengthen downside support and boost the rebound potential of the share price by providing a supply-demand buffer."