South Korean shares hit record on chip boost, won jumps to 3-month high

SEOUL, Jan 28 (Reuters) - Round-up of South Korean financial markets:

South Korean shares rose more than 1% on Wednesday to notch a record close, led by a rally in chipmakers, while the won hit a near three-month high on a weaker dollar.

The benchmark KOSPI .KS11 ended the session up 85.96 points, or 1.69%, at 5,170.81, its highest closing level, after rising as much as 1.94% earlier in the day.

U.S. President Donald Trump said on Tuesday the United States and South Korea would work out a solution when asked about his surprise Monday announcement that he would increase tariffs on imports from the Asian ally to 25%.

Trump also said the value of the dollar was "great" when asked by a reporter whether he thought it had declined too much, sending the dollar even lower.

His surprise tariff announcement had little impact on domestic markets on Tuesday, with the KOSPI and the won rising, although auto stocks fell.

Chipmaker Samsung Electronics 005930.KS rose 1.82% and peer SK Hynix 000660.KS gained 5.13% on Wednesday, leading the benchmark higher. The two chipmakers are due to report their fourth-quarter results on Thursday.

Battery maker LG Energy Solution 373220.KS climbed 5.51%, while Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were up 0.82% and down 2.48%, respectively.

Of the total 926 traded issues, 432 shares advanced, while 441 declined.

Foreigners were net sellers of shares worth 134.4 billion won ($94.36 million).

The won was quoted at 1,422.5 per dollar on the onshore settlement platform KRW=KFTC, 1.05% higher than its previous close at 1,437.5.

The currency hit its strongest level since October 30, 2025, at 1,420.0.

The most liquid three-year Korean treasury bond yield KR3YT=RR fell 1.7 basis points to 3.074%, while the benchmark 10-year yield KR10YT=RR slipped 2.2 bps to 3.518%.

($1 = 1,424.4000 won)