South Korean Chip Stocks Rise on $950 Billion AI Partnership; Kospi Closes Up Nearly 1% as SK Hynix Rebounds Over 3% and Samsung Gains
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Asian markets rebounded on July 27 as geopolitical tensions eased following a pause in U.S.-Iran airstrikes. The KOSPI and Nikkei 225 rose 0.97% and 0.50%, respectively. South Korea’s semiconductor sector outperformed, driven by $950 billion in new AI supply chain partnerships with U.S. firms. SK Hynix and Samsung Electronics gained significantly, while Japanese tech stocks like SoftBank and Kioxia weakened. Furthermore, SK Hynix’s outlook strengthened as Meritz Securities projected substantial non-operating income for Q2 2026, stemming from its Kioxia stake sale, potentially pushing pre-tax profits above 100 trillion won.
TradingKey - During the Asian session on July 27, Japanese and South Korean stock markets generally extended their rebound. SK Hynix rose 3.5%, Samsung Electronics rose 2%, while SoftBank and Kioxia both fell.
The South Korean benchmark KOSPI index closed up 0.97% at 6,755.74 points, while the Nikkei 225 index rose 0.50% to close at 64,931.19 points.
Source: TradingView
The South Korean semiconductor sector continued to attract capital, with SK Hynix rising 3.47% to close at 1,820,000 won (approximately $1,313), and Samsung Electronics advancing 2% to close at 254,500 won (approximately $184).
Japanese tech stocks showed weaker performance, with SoftBank Group falling 3.07% to close at 5,331 yen (approximately $32.6), and Kioxia dropping 2.61% to close at 54,550 yen (approximately $334).
Market sentiment improved, boosted on one hand by signs of easing tensions in the Middle East. According to media reports, after 13 consecutive days of military operations, the U.S. suspended airstrikes against Iran on Friday night, and the Iranian military subsequently stated it had suspended its military response. This temporary cooling of geopolitical risks alleviated risk-off sentiment in Asian markets.
On the other hand, the continuous release of major partnership announcements in South Korea's AI supply chain also supported the semiconductor sector. The South Korean presidential office stated that South Korean enterprises, including Samsung Electronics and SK Group, have signed partnership agreements totaling approximately $950 billion with several U.S. tech companies, with key focus areas covering AI chips, high bandwidth memory (HBM), advanced foundry services, and data center construction.
In addition, SK Hynix also welcomed a potential earnings catalyst. South Korea's Meritz Securities projected on July 27 that due to the completion of the sale of its stake in Kioxia in June this year and the recognition of related investment gains, the company is expected to add approximately 41.6 trillion won in non-operating income in the second quarter of 2026, with pre-tax profit projected to exceed 100 trillion won.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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