[Market Review] KOSPI 5,100 Breakthrough—Semiconductor Earnings Optimism and Policy Tailwinds
On Wednesday, January 28, 2026, the South Korean stock market displayed overwhelming strength, shrugging off brief consolidation concerns to hit record levels. The KOSPI closed at 5,168.41 (+1.64%), while the KOSDAQ continued its vertical ascent, rising +3.58% to 1,121.38. The market was electrified by SK Hynix’s dominant position in the AI supply chain and a sharp drop in the USD/KRW exchange rate following President Trump’s favorable comments on a weaker dollar.
1. Semiconductors: SK Hynix Secures Nvidia’s HBM4 and Unveils 12T Share Burn
The AI super-cycle entered a new phase of conviction as the “Semiconductor Brothers” led the index higher ahead of major earnings releases.
- The HBM4 Monopoly: SK Hynix (000660) surged following reports that it has secured approximately two-thirds of the HBM4 volume for Nvidia’s next-generation “Vera Rubin” architecture.
- The Evening Surprise: Following the market close, SK Hynix announced a historic 47.2 trillion KRW operating profit for FY2025 and resolved to cancel 12.24 trillion KRW worth of treasury shares, a move that has sent after-hours markets into a parabolic rally.
- Key Tickers: SK Hynix (000660), Samsung Electronics (005930), HPSP (403870).
2. KOSDAQ’s Historic Run: The 18% Five-Day Surge
The KOSDAQ is currently experiencing a “policy-driven short squeeze,” outperforming the main board through massive institutional support.
- Pension Fund Inflow: Following the government’s “Project 3000” and the Pension Fund’s decision to raise domestic stock allocation targets, institutions have recorded four consecutive days of trillion-won net purchases.
- Liquidity Peak: Combined daily trading volume has stabilized above 40 trillion KRW, signaling that the current highs are being supported by fresh capital.
3. Macro & FX: Trump’s “It’s Great” Endorsement of Weak USD
The global macro environment provided a perfect tailwind as the “Trade War” narrative transitioned into a “Currency Adjustment” phase.
- Dollar Devaluation: The USD/KRW exchange rate plummeted 16.1 KRW to hit 1,421. President Trump’s recent remark that a weaker dollar is “great” has been interpreted as a green light for further depreciation, boosting the attractiveness of emerging market assets. (mentioned in the previous article)
- Tariff De-escalation: Trump’s toned-down rhetoric regarding Korean tariffs confirmed the “TACO” (Commit-and-Out) strategy, relieving the automotive and industrial sectors.
4. Secondary Battery & Robotics: The Humanoid Synergy
The battery sector found a new growth engine in the emerging robotics market, triggering a sharp rebound in heavily shorted names.
- ESS & Humanoids: LG Energy Solution (037320) surged +5.0% on news of multiple ESS contracts and potential battery supply deals for humanoid robot manufacturers.
- Key Tickers: LG Energy Solution (037320), Ecopro (086520), Rainbow Robotics (272410), L&F (066970).
5. Biopharma: Policy Roadmaps and Active ETFs
The biopharma sector staged a robust recovery as the government announced a new comprehensive roadmap for the industry.
- Active Bio-ETFs: Reports that major brokerages are preparing to launch “Bio Active ETFs” triggered a rush into sector leaders that were previously suppressed by valuation concerns.
- Key Tickers: Hanmi Pharm (128940), Celltrion (068270), Alteogen (196170).
Institutional Conviction: Top 5 High-Trend Tickers
Institutions and Pension Funds are focusing on sectors that represent the intersection of “AI Monopoly” and “Value-Up Returns”:
- SK Hynix (000660): The undisputed leader for HBM4 supply, now bolstered by a record-breaking 12.2T share cancellation.
- LG Energy Solution (037320): Re-rated as a primary supplier for the “Robot-Battery” ecosystem.
- Rainbow Robotics (272410): The top institutional pick for the ongoing robotics super-cycle.
- Hanmi Pharm (128940): Leading the bio-tech rebound on the back of government policy support.
- Samsung Electronics (005930): Gaining traction as the anchor of the index with new leverage ETF catalysts on the horizon.
Investor Strategy: The KOSPI has entered the 5,100 era with high conviction. While short-term volatility is possible ahead of the FOMO-driven 5,200 mark and upcoming US Tech earnings, the structural trend remains upward. The combination of Weak Dollar, AI Monopoly, and SK Hynix’s Unprecedented Shareholder Return has created a resilient floor. Focus on “Oversold Leaders” in the battery and bio sectors, and maintain a core long position in semiconductor giants as they deliver generational wealth-building results.
