KOSPI Breaks 6,900 as SK Hynix Tops 1.4 Million Won, US Investors Join the K-Stock Rally

Record Highs as KOSPI Hits 6,900

The KOSPI jumped more than 4% intraday, closing in on 6,900 and crossing that level live during the broadcast. The KOSDAQ also gained over 1.8%, while the won held around 1,472 per dollar after a modest early dip.

There was no fresh catalyst — renewed conviction that Samsung Electronics and SK Hynix earnings would keep growing, alongside solid results in shipbuilding, defense, and power equipment, drove the rally. With Japanese and Chinese markets closed for holidays, foreign investors bought over 2 trillion won of KOSPI shares, 1.7 trillion won in futures, and more than 500 billion won on the KOSDAQ.

Still, only 419 stocks advanced, roughly matching decliners, underscoring a large-cap-led market. Some brokerages expect May gains to slow after the KOSPI's more than 30% rally in April, but host Lee Kwang-soo pushed back, arguing the rebound mainly reflects a recovery from the pre-war level of 6,300 points rather than overheating, dismissing the mechanical 'sell in May' narrative.

Hynix Tops 1.4 Million Won, Brokerage Stocks Hit Limit-Up

SK Hynix surged 11-12% intraday to touch between 1.42 and 1.44 million won, and SK Square rose over 13% to hold its position as the fourth-largest company by market cap. The rally was partly attributed to reports from overseas financial media suggesting Hynix could pursue a US ADR listing as early as July.

Analysts split on Samsung Electronics. Citi cut its target price from 320,000 to 300,000 won, citing one-off costs tied to a labor union strike, while Goldman Sachs raised its target from 300,000 to 320,000 won on expectations of deepening memory shortages through 2027-2028. Korea Investment & Securities lifted its target to 370,000 won, citing Samsung's dominant market share, and kept it as its top pick in the sector.

Samsung Securities jumped roughly 28% to hit the daily limit as the new US direct-investment service launched, lifting brokerage stocks broadly. Several more securities firms are reportedly preparing similar tie-ups with US partners, fueling optimism across the sector.

The Era of Direct US Investment in Korean Stocks

A new integrated foreign-investor account service now lets US retail investors buy Korean stocks directly through partnerships between US and Korean brokerages. Previously indifferent US investors have started paying attention as Korean stocks have rallied sharply, echoing how Japanese and Taiwanese equities were re-rated in the past.

This could be a turning point for Korea's financial industry, which has long lagged globally despite the country's strength in semiconductors, autos, batteries, and shipbuilding. Panelists suggested that as the market grows and foreign capital keeps flowing in, Korea could eventually produce its own globally competitive investment banks.

This week brings a heavy earnings slate, with 76% of KOSPI companies having already reported. Focus shifts to KOSDAQ names and the shipbuilding, defense, and entertainment sectors. Domestically, Lotte Chilsung and Pan Ocean report Monday; DB HiTek, Kakao affiliates, SM, Hyundai Department Store, SK Bioscience, and Hanwha on Wednesday; HD Hyundai affiliates, LIG Nex1, Korea Aerospace Industries, and SK Telecom on Thursday; and Korea Kolmar, Cosmecca Korea, Pharma Research, and Wonik IPS on Friday. Overseas, Palantir reports after Monday's US market close, while AMD — widely watched as a bellwether for memory demand — reports Tuesday.

Why Trump Fears Rising Bond Yields

Last week's spike in oil prices, a hawkish FOMC, and US 10-year Treasury yields pushing toward the high-4.4% range weighed on markets. Hosts pointed to several reasons Trump reacts sharply to rising yields: the enormous interest burden on federal debt, his own exposure to bonds, the bond market's sheer size relative to equities, and the tension between higher rates and the dollar-liquidity flows that underpin dollar hegemony.

US interest payments on government debt are now estimated to exceed the defense budget, meaning even a modest further rise in rates could sharply squeeze fiscal flexibility.

Against this backdrop, host Lee Kwang-soo reiterated his caution on US equities. Even as the S&P 500 hits record highs, Wall Street's year-end targets imply at most roughly 10% further upside, and one economist warned the index could plunge 30%. Still, the fact that chip and power-equipment earnings held firm through the recent conflict was cited as evidence that AI-driven demand is resilient to geopolitical shocks.

The Strait of Hormuz and 'Project Freedom'

President Trump announced on social media that a 'Project Freedom' operation to help free vessels trapped in the Strait of Hormuz would begin Monday morning. Rather than a direct US Navy escort, the plan reportedly involves sharing safe-route information with other countries.

Host Lee Kwang-soo interpreted this less as substantive military intervention than as a soothing message aimed at easing pressure on oil prices and bond yields. He noted that hundreds to as many as roughly 2,000 vessels have already exited the strait since the conflict began through individual negotiation or risk-taking, suggesting the announcement doesn't materially change the situation.

A Labor Day Reflection and the 'Washing Machine Paradox'

Marking Labor Day, host Lee Kwang-soo recalled that between 2003 and 2007, under the Roh Moo-hyun administration, the KOSPI quadrupled from about 500 to 2,000, yet many citizens felt little benefit because so few were invested in stocks at the time. He argued that even now, as the KOSPI climbs past 6,000 from 3,000, not everyone is sharing in the gains, and that workers becoming capitalists themselves is the way to spread growth's benefits more evenly.

In the segment he calls Kwangsoo's Thoughts, he told the story of the washing machine, invented in 1908. Contrary to expectations that it would cut housework, US weekly housework hours actually rose between 1920 and 1960 as the machine spread — because doing laundry became easier, people simply did it more often.

The lesson, he suggested, is to avoid betting forecasts on a single big idea: keep asking 'what happens next,' always consider the opposite scenario, and examine the incentives behind anyone making a prediction. He cited recent examples — rumors of falling Google DRAM usage, Citi's rationale for cutting Samsung's target price, and real estate bulls' vested interests — urging viewers to apply Charlie Munger's mode of thinking to their own investment decisions.