Decoupling from the Hormuz Crisis: KOSPI Hits New High as SK Hynix Breaches 1.2M Won Milestone
Despite the persistent fog surrounding the second round of U.S.-Iran peace talks, the South Korean stock market surged to a fresh historical high on Tuesday, fueled by the relentless rally of semiconductor heavyweights.
Investors appear to be looking past the immediate geopolitical friction, anchoring their optimism in record-breaking corporate earnings and the hope for a diplomatic breakthrough in Pakistan.
KOSPI Erases "War Discount"
On Tuesday, April 21, the benchmark KOSPI index shattered the 6,300-point barrier, reaching an intraday all-time high of 6,361.17.
This move effectively erases all losses incurred since the outbreak of hostilities in the Middle East.
The previous closing record of 6,307.27, set on February 26, was eclipsed as market sentiment shifted from extreme risk aversion to aggressive growth-seeking.
The rally was spearheaded by the "Big Two" of the memory world:
- Samsung Electronics: Gained over 2% during intraday trading.
- SK Hynix: Surged 4.5%, closing above the 1.2 million KRW milestone for the first time in history.
Earnings Optimism: A 40 Trillion Won Preview
The market’s confidence is bolstered by the upcoming Q1 earnings report from SK Hynix, scheduled for release this Thursday, April 23.
Analysts at KB Securities have set a high bar, forecasting a record-breaking operating profit of 40 trillion KRW for the quarter.
This "blockbuster" expectation has acted as a primary driver for the KOSPI’s ascent, as the AI-driven demand for HBM (High Bandwidth Memory) continues to outpace supply.
Stabilizing Volatility and Returning Capital
Since the start of the U.S.-Iran conflict, the Korean market has been defined by extreme swings, including single-day movements of up to 12%. However, analysts at Kiwoom Securities suggest that the market is becoming "desensitized" to the Hormuz crisis.
"Market volatility has significantly moderated," a Kiwoom analyst noted, pointing to the return of foreign capital.
After offloading a record 35 trillion KRW (approx. $23.8 billion) in Korean equities last month, offshore investors are reportedly returning to the Seoul bourse, viewing the current valuation as an attractive entry point amid the AI super-cycle.
Diplomatic Poker in Islamabad
While the markets rally, the diplomatic front remains a high-stakes game of poker. President Trump confirmed that Vice President JD Vance is traveling to Pakistan, with a second round of peace talks scheduled to begin on April 21.
Although Iran has yet to officially confirm its attendance—citing the ongoing U.S. naval blockade as a barrier—mediators from Pakistan, Egypt, and Turkey are reportedly working behind the scenes to ensure a seat for the Iranian delegation.
As the host nation, Pakistan expressed "high confidence" on Monday that it could facilitate the meeting, providing a glimmer of hope that the two-week temporary ceasefire might yet lead to a more stable resolution.