Samsung Electronics Soars Nearly 5%, KOSPI Hits Another Record High — But Construction and Auto Stocks Lag Behind

 On September 22, the KOSPI once again broke its all-time high, closing at 3,468.65 points, thanks to a sharp rally in market heavyweight Samsung Electronics. The stock surged nearly 5%, driving the index higher and extending the September rally. However, the gains were far from broad-based, as construction and auto sectors continued to slump, revealing a growing divide in the Korean stock market.

Samsung Electronics Jumps 4.77% on HBM Breakthrough

Samsung Electronics closed at ₩83,500, up 4.77% from the previous day. This marked the largest single-day gain in nearly two months since July 28, when the stock famously reclaimed its “₩70,000 Samsung” status.

The surge was triggered by news that Samsung’s HBM3E 12-stack memory chips had passed Nvidia’s quality tests and secured purchase orders. Although Samsung has not officially confirmed the deal, investors interpreted the development as a strong sign of success in the highly competitive high-bandwidth memory (HBM) market.

According to KB Securities analyst Kim Dong-won, “Samsung has now joined SK hynix and Micron as suppliers of HBM3E to Nvidia. For next-generation HBM4, Samsung is expected to hold the strongest competitive position with the industry’s fastest 11Gbps data processing speed.”

Global Banks See AI “Supercycle” Driving Memory Demand

Adding fuel to the rally was a bullish report from Morgan Stanley, which named Samsung Electronics as its top pick in the memory sector.

The bank noted that the AI boom has become a new technology supercycle, reshaping demand across the semiconductor industry. It forecast that by 2026, the memory market will face a significant supply-demand imbalance, pushing prices higher.

In line with this outlook, Morgan Stanley raised its target price for Samsung Electronics from ₩86,000 to ₩96,000 and for SK hynix from ₩260,000 to ₩410,000.

Construction and Auto Stocks Move in the Opposite Direction

Despite the record-setting KOSPI, not all sectors participated in the rally. Construction and auto shares have been struggling throughout September:

  • KRX Construction Index: down 3.15% this month

  • KRX Auto Index: down 2.61% this month

This contrasts sharply with the tech-heavy sectors:

  • KRX Semiconductor Index: up 23.19%

  • KRX IT Index: up 18.9%

  • KRX Securities Index: up 14.84%

Why Are Construction and Auto Stocks Weak?

Analysts point to policy risks as the main culprit. The government’s September 15 Comprehensive Safety Plan and the recent passage of the Yellow Envelope Law have increased pressure on industries with high labor risks.

Construction and automotive companies, with their complex subcontracting structures, are expected to bear the brunt of stricter labor safety rules and potential cost burdens.

Kim Sun-mi of Shinhan Investment Corp. explained: “The new safety measures will inevitably raise direct and indirect costs, financing expenses, and even weigh on ESG evaluations for construction firms. These policy risks are becoming a clear reason for valuation discounts across the sector.”

Key Takeaways for Investors

The latest market trend highlights one important reality: the rally is highly concentrated. While the KOSPI keeps hitting record highs, the broader market tells a more nuanced story.

  • Opportunities: AI-driven semiconductor boom, strong global demand, and bullish outlooks from investment banks

  • Risks: policy-driven headwinds in construction and auto sectors, growing polarization across industries

In other words, Korea’s stock market may look strong on the surface, but investors should be careful not to confuse index highs with broad-based strength.

Conclusion

Samsung Electronics’ surge on September 22 powered the KOSPI to yet another record, underscoring the market’s reliance on tech and semiconductor momentum. At the same time, traditional industries like construction and autos continue to face headwinds from regulatory and policy risks.

Going forward, the key question for investors is whether the AI semiconductor supercycle will keep lifting the market, or whether other sectors will start catching up.

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