South Korea's KOSPI Closes at Record High Amid Hopes for U.S.-Iran Talks

South Korea's stock market achieved a record high on April 21, 2026, as the benchmark KOSPI index closed at 6,388.47 points, up 2.72 percent from the previous session. The previous record was set on February 26, 2026, when the index closed at 6,307.27 points.

The market has experienced significant volatility since the start of the conflict between the United States and Iran, with daily changes including a drop of up to 12 percent and a rise of up to 9 percent.

March 2026, the KOSPI recorded a decline of over 19 percent, the largest among global markets, according to data from Yonhap Infomax. This was attributed to the Middle East crisis, which contributed to concerns over high inflation and an economic slowdown.

Global oil prices exceeded $100 per barrel after Iran closed the Hormuz Strait, a major oil transportation route. Investors have shown decreased concern over ongoing developments in the region, with attention shifting to progress in U.S.-Iran peace talks.

Investor Trends Optimism has grown regarding South Korea's major chipmakers, with a focus on upcoming corporate earnings. SK hynix Inc. is scheduled to release its first-quarter 2026 earnings this week. A major chipmaker reported a first-quarter operating profit exceeding 50 trillion won ($33.9 billion), driven by increased demand for chips related to artificial intelligence.

Market watchers anticipate strong results from SK hynix, supported by sales of high bandwidth memory for AI applications and tight supply of DRAM chips. Foreign investors, who net sold 35 trillion won ($23.8 billion) worth of local stocks in the previous month, have begun purchasing again.

Government efforts to improve shareholder returns and reform capital markets are expected to support further market gains.

A two-week ceasefire in the U.S.-Iran conflict is set to expire on April 22, 2026, Washington time. Goldman Sachs raised its 12-month target for the KOSPI to 8,000 points from 7,000 points, citing improved industry fundamentals. JPMorgan Chase & Co. described South Korea as one of its top preferred markets in the region and set a bull case target of 8,500 points.