Kospi Rally Pauses at 6,500 After Samsung, SK Hynix Earnings Boost

Kospi sets record intraday highs for a third straight session

Index pauses after briefly topping 6,500

Samsung Electronics, SK Hynix earnings momentum fades

Brokerages say another breakout above the previous peak is only a matter of time

Market may shift toward earnings-driven stock picking

South Korea’s Kospi is showing signs of resistance around the 6,500 level after absorbing first-quarter earnings from chipmakers Samsung Electronics and SK Hynix, limiting further gains. With the index already above its previous high on the back of strong semiconductor earnings, investors appear to be weighing what could drive the next leg of the rally.

According to the Korea Exchange, the Kospi set record intraday highs for a third straight session on April 23, even as gains slowed by the close. The index briefly rose above 6,500 early in the session, then retreated on selling by foreign and institutional investors to end up 0.90% at 6,475.81. SK Hynix, which had drawn market attention ahead of its earnings report, posted first-quarter results in line with expectations that day, but its shares fell intraday, suggesting limited room for the stock to keep leading the market higher.

Still, market watchers say SK Hynix’s earnings once again underscored the semiconductor sector’s role as the backbone of the equity market.

SK Hynix reported first-quarter revenue of 52.5762 trillion won ($38.0 billion) and operating profit of 37.6102 trillion won ($27.2 billion). Combined with Samsung Electronics, the two companies generated about 95 trillion won ($68.8 billion) in first-quarter operating profit. SK Hynix’s operating margin reached 72%, far above the 65% operating margin posted by Nvidia in the previous quarter.

Bank of Korea data showed first-quarter exports rose 5.1% from the previous quarter and 10.3% from a year earlier, supported by semiconductors. Real gross domestic product grew 1.7% from the prior quarter.

Even so, the Kospi’s move above 6,500 on April 23 triggered heavy selling by foreign and institutional investors, briefly pushing the index into negative territory and rattling investors.

Lee Eun-taek, an analyst at KB Securities, said the Kospi rally had reached the 6,500 resistance level faster than expected, and a breakout in the trend could be delayed by lingering uncertainties including inflation, concerns over Federal Reserve tightening and the situation in Iran. Even so, he said the recent backdrop resembled the so-called three-low boom, when the market broke above previous highs during an economic expansion, making further gains largely a matter of time.

Surging demand for artificial intelligence agents is easing concerns about overinvestment, Lee said, adding that South Korean equities could continue their AI-led bull run. If the Kospi breaks above 6,500, the market could surge as retail buying joins the advance.

The prevailing view in the market is that any move toward the 7,000 level on the Kospi will depend on the share performance of Samsung Electronics and SK Hynix.

Kim Ji-hyun, an analyst at Daol Investment & Securities, said the first phase of the rally had largely ended after the Kospi broke above its previous high, helped by foreign investors’ long bets on the index and short covering in oversold individual stocks. Most of the momentum from the semiconductor sector’s first-quarter earnings season has already been priced in, she added.

Kim pointed to last year’s pattern in SK Hynix shares. The stock rose 60% over one month in October, then underwent a 10% correction in November. From mid-November to early January 2026, it rallied again as foreign investors turned net buyers of index futures in advance and retail investors bought stock futures. This year, SK Hynix fell 24% in March and then rebounded 52% in April, while Samsung Electronics rose 30%.

Recent net buying of stock futures by foreign investors shows medium-term buying pressure on semiconductors remains intact, Kim said. The key issue is whether spot buying tied to position rollovers emerges ahead of the May 14 expiration.

Kim Min-kyu, an analyst at KB Securities, said retail flows are now likely to spread into individual stocks after the Kospi broke above its previous peak. Based on past cases, investors should focus on sectors where earnings estimates are being revised higher, he said.

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com