Tech Surge: South Korean Shares Soar Amid AI Boom

South Korean shares experienced the biggest daily surge in three weeks as the AI boom fueled a tech rally, even amid threats of increased U.S. tariffs. Major tech stocks, Samsung and SK Hynix, saw significant gains, while auto stocks struggled. South Korea plans diplomatic talks to address trade concerns.

On Tuesday, South Korean shares soared to their largest daily increase in three weeks, powered by a global boom in artificial intelligence (AI) that triggered a rapid tech sector rally. This surge helped counterbalance concerns arising from U.S. President Donald Trump's announcement of a tariff hike on Korean imports.

Despite initial setbacks, the KOSPI index recovered with a 2.73% gain, driven by strong performances in the tech industry, specifically from major chipmakers Samsung Electronics and SK Hynix. These companies experienced notable gains, climbing 4.87% and 8.70%, respectively, thanks to soaring demand for AI-related technology.

While automakers like Hyundai and Kia faced challenges, the overall market optimism was bolstered by investor interest in tech advancements. In response to the tariff threats, South Korea is swiftly organizing diplomatic efforts, with plans to send a top trade envoy to the U.S. to negotiate and reaffirm its commitment to the trade agreement.

(With inputs from agencies.)