[Market Review] KOSPI Solidifies 5,050 Era—HBM Monopoly and Policy Shifts Overpower Tariff Noise

On Tuesday, January 27, 2026, the South Korean stock market demonstrated extraordinary resilience, overcoming a direct tariff threat from Washington to secure a definitive close above the 5,000-point milestone. The KOSPI surged +2.20% to 5,058.68, while the KOSDAQ rose +1.46% to 1,079.96. Although President Trump’s warning of a 25% tariff on Korean goods triggered an initial dip, the market executed a textbook “TACO” (Trump’s Art of the Deal/Commit-and-Out) rebound, fueled by the absolute dominance of Korean semiconductors in the global AI supply chain.

1. Semiconductors: SK Hynix’s Solo Flight to 1.4 Million KRW

The semiconductor sector acted as the primary engine for today’s 100-point surge, with SK Hynix reaching a historic valuation peak.

• The Microsoft Catalyst: SK Hynix (000660) skyrocketed +7.6% following reports that it has secured an exclusive deal to supply HBM for Microsoft’s in-house AI chip, the Maia 200.
• The 1.4M Vision: Citi Group raised its target price for SK Hynix to 1.4 million KRW, citing the company’s supply-side monopoly in the high-end HBM market. This aligns with Chairman Chey Tae-won’s recent ambitious market cap target of 2,000 trillion KRW, sparking speculation of a potential stock split.
• Samsung’s Synergy: Samsung Electronics (005930) also rose +3.3% on HBM4 supply expectations, contributing to a combined index boost of approximately 80 points.

2. Digital Assets & Fintech: Legalizing the ‘Cheonsdaq’ Era

The government’s shift toward institutionalizing digital assets provided a fresh wave of liquidity for the KOSDAQ and fintech-heavy KOSPI names.

• ICO Approval: News that the government plans to allow legal entities to hold digital assets and permit Initial Coin Offerings (ICOs) triggered a rally in platform giants.
• Key Tickers: NAVER (035420) rose +3.6%, while fintech leaders like NHN KCP (060250) surged +8.8% on stablecoin integration hopes.

3. Telecommunications: SKT’s AI Value Re-rating

The telecommunications sector saw a rare high-amplitude rally, led by the market’s leading AI-integrated carrier.

• The Anthropic Factor: SK Telecom (017670) surged +12.0% as the valuation of its stake in Anthropic (maker of Claude AI) moved center stage ahead of its 2026 IPO.
• Dividend Recovery: With 2025 security-related compensation issues resolved, investors are aggressively buying the “Big Three” carriers in anticipation of early dividend normalization.

4. Power Infrastructure: LS Electric’s Record Surprise

The “Energy Thirst” theme remains a structural winner as domestic manufacturers deliver record-breaking earnings.

• Earnings Beat: LS ELECTRIC (010120) jumped +8.4% after reporting its highest-ever quarterly profit, driven by surging demand for AI data center grid equipment.
• Key Tickers: HD Hyundai Electric (267260), Doosan Enerbility (034020).

5. Macro Analysis: The Canada Submarine and TACO Strategy

President Trump’s threat to raise tariffs from 15% to 25% was interpreted by the market as a tactical move rather than a fundamental policy shift.

• Negotiation Leverage: Analysts believe the threat is aimed at pressuring the Korean National Assembly for faster legislative approval of U.S. investment deals.
• The Canada Factor: Trump’s pressure also relates to the Canada Submarine project, where Hyundai is competing against European rivals. Trump is reportedly using tariff threats to ensure that any major North American production facilities are built within U.S. borders rather than Canada.
• Resilience: Much like the previous Greenland-related tariff threats, the market expects a compromise via negotiation (TACO) rather than actual implementation.

Institutional Conviction: Top 5 High-Trend Tickers

Institutions recorded their third consecutive day of heavy net buying on the KOSDAQ, while selectively doubling down on KOSPI’s AI leaders:

1. SK Hynix (000660): The definitive winner of the Microsoft HBM monopoly and the 1.4M KRW target upgrade.
2. SK Telecom (017670): Re-rated as a high-growth AI holding company thanks to its Anthropic stake.
3. LS ELECTRIC (010120): The primary beneficiary of the global AI power infrastructure super-cycle.
4. Danal (064260): Capturing the policy tailwind for legal ICOs and digital asset institutionalization.
5. Samsung Electronics (005930): Regaining the 80,000 KRW level as it re-enters the high-end AI supply chain for major tech firms.

Investor Strategy: The KOSPI has successfully cleared the 5,000-point psychological barrier. While Trump’s tariff noise will cause short-term intraday swings, the underlying trend is firmly anchored by HBM Dominance and Regulatory Reform. We recommend maintaining an aggressive long stance on semiconductor and power infrastructure leaders. For the KOSDAQ, focus on “Oversold Growth” stocks in the bio and fintech sectors that are set to benefit from the ongoing institutional buying spree.