South Korean stocks staged a dramatic recovery on Friday, with the benchmark Kospi posting its biggest single-day gain on record as investors rushed back into technology companies following a three-day sell-off that had wiped hundreds of billions of dollars from the country’s market value.
The Kospi jumped 17.9 percent to close at 6,695.45, reversing much of the losses recorded earlier in the week. Chipmakers Samsung Electronics and SK Hynix were at the centre of the rebound, with their shares rising 28 percent and 30 percent respectively.
The rally followed stronger-than-expected results from major US technology companies, including Microsoft and Amazon. Their earnings helped ease concerns over whether the enormous investment in artificial intelligence infrastructure would generate sufficient returns.
Microsoft shares had risen sharply after the company reported strong results and forecast faster growth for its Azure cloud business. Amazon also gained more than 9 percent in after-hours trading following its earnings announcement. The positive reaction in the United States helped improve sentiment toward Asian chipmakers that supply technology companies involved in the AI expansion.
SK Hynix is a major supplier to Nvidia and has benefited from strong demand for advanced memory used in AI systems. Samsung is also a leading global producer of memory chips.
The Friday rebound came after an exceptionally difficult three sessions for South Korean investors. The Kospi had fallen sharply as concerns about excessive valuations, growing competition from Chinese chipmakers and the huge sums being spent on AI infrastructure triggered widespread selling. SK Hynix suffered particularly heavy losses after its latest earnings failed to satisfy investors despite a substantial increase in quarterly profit.
The sharp swings have highlighted the unusual volatility of South Korea’s stock market this year. The technology-heavy Kospi had more than doubled from the end of 2025 before the recent correction, and trading has been halted several times under circuit-breaker rules designed to prevent panic selling.
South Korean regulators have also announced measures aimed at stabilising the market following this week’s losses.
The rebound extended across other Asian markets. Japan’s Nikkei also rose strongly, while Taiwan’s Taiex advanced as technology shares recovered. Taiwan Semiconductor Manufacturing Company gained 10 percent, according to market reports.
Despite the dramatic recovery, investors remain divided over the sustainability of the AI investment boom. The latest earnings from US technology companies have provided fresh evidence of strong demand, but the scale of spending has also raised questions about valuations and future returns.
The latest moves show how closely South Korea’s market is tied to global technology sentiment, particularly as Samsung and SK Hynix account for a substantial share of the country’s largest listed companies. The speed of both the sell-off and Friday’s recovery underlines the heightened risks facing investors in the AI-driven technology trade.
