South Korean Markets Rally on Improved Economic Forecasts
South Korean financial markets experienced a significant upswing on Thursday, November 27, 2025, propelled by an optimistic revision of economic growth forecasts from the nation's central bank. The benchmark KOSPI index recorded strong gains, heavily influenced by a surge in major chipmaking stocks, while the Korean won also strengthened against the US dollar.
Key Market Movements and Central Bank Decision
The benchmark KOSPI was up by 52.42 points, or 1.32%, reaching 4,013.29 as of 0057 GMT. This positive sentiment was directly linked to the Bank of Korea's (BOK) decision to hold interest rates steady while simultaneously raising its growth projections. The central bank now anticipates the economy to grow by 1.0% for this year, up from a previous forecast of 0.9%. For the next year, the outlook was lifted even more substantially to 1.8% from 1.6%.
Investor attention was firmly set on the upcoming press conference by BOK Governor Rhee Chang-yong, scheduled for 0210 GMT, where he was expected to elaborate on the policymakers' views, particularly concerning the recent weakness of the local currency.
Sector Performance and Currency Dynamics
The market rally was led by heavyweight technology companies. Samsung Electronics rose 2.04%, while its peer SK Hynix saw a substantial jump of 5.34%. Other notable movers included drugmaker Samsung BioLogics, which gained 1.33%. In contrast, automakers Hyundai Motor and Kia Corp declined by 0.38% and 0.13%, respectively, and steelmaker POSCO Holdings shed 0.31%.
Overall market breadth was positive, with 458 shares advancing out of the 922 traded issues, compared to 386 that declined. Supporting the bullish trend, foreign investors were net buyers of shares worth 185.1 billion won.
On the currency front, the Korean won strengthened, quoted at 1,466.9 per dollar on the onshore settlement platform, a 0.10% gain from its previous close of 1,468.3. This movement occurred despite ongoing concerns about currency weakness, with the country's finance minister having recently vowed to stabilize the won, though without announcing specific new measures.
In debt markets, the most liquid three-year Korean treasury bond yield fell by 0.3 basis points to 2.897%, and the benchmark 10-year yield fell by 1.0 basis point to 3.249%.
