FX.co ★ South Korean Shares Surges on New Market Reforms and Stimulus Plans

The benchmark KOSPI experienced a notable rise of 1.8% on Monday, closing at 2,946 points, rebounding from a previous 0.9% decline. This occurred amid a backdrop of resilience in most Asian markets, despite the ongoing fourth day of conflict between Israel and Iran. Investors have increasingly turned their focus to South Korea's Ministry of Economy and Finance, which is in the final phases of preparing a substantial secondary supplementary budget valued at $14.6 billion (approximately ₩20 trillion). This budget aims to stimulate domestic demand and hasten economic recovery.

Further bolstering investor sentiment were recent policy declarations from President Lee Jae-myung, who has vowed to overhaul the country's tax system to incentivize higher dividend payouts, thereby enhancing the attractiveness of the domestic stock market. On the corporate front, SK Hynix surged ahead with gains of 5.1%, followed by Hyundai Heavy Industries with 4.8%, and KB Financial Group with 1.7%. In contrast, Samsung Electronics and LG Energy Solution experienced declines, registering losses of 1.7% and 1.2%, respectively.