**Seoul Stock Index Gains Curbed After Bank of Korea Raises Interest Rate**
*Seoul, Aug. 27, 2026* – The KOSPI index opened higher on Thursday but fell short of the 7,000‑point level after the Bank of Korea (BOK) announced its second consecutive benchmark rate increase.
The index began trading at 6,996.12 points, up 2.76 % from the previous session, following Nvidia’s release of fiscal second‑quarter results that showed revenue of $96.2 billion— a 106 % increase year‑over‑year and above Wall Street forecasts. The strong earnings report reinforced expectations that demand for artificial‑intelligence (AI) infrastructure and semiconductors remains robust, lifting chip‑related stocks across the Korean market.
Around 10 a.m. local time, the BOK raised its benchmark interest rate from 2.75 % to 3.00 %, prompting a sharp narrowing of the early gains. The KOSPI later recovered some ground but closed at 6,912.37 points, a net increase of 1.53 % for the day.
Investor activity showed a divergence between foreign, institutional, and retail participants. Foreign investors were net buyers of 152.4 billion won (approximately $111 million), while institutional investors added a net 177.6 billion won. In contrast, retail investors sold a net 1.91 trillion won.
Semiconductor leaders also posted gains. Samsung Electronics rose 1.72 % to 266,000 won, and SK Hynix advanced 2.49 % to 1.73 million won.
Analyst Byun Jun‑ho of IBK Securities commented, “Nvidia’s strong earnings should ease some of the concerns surrounding the AI and semiconductor industries, but the prospect of a peak in the economic cycle will likely keep investors wary of heightened market volatility.” He added that the Korean market is expected to remain range‑bound in September amid signs of an economic slowdown, the upcoming U.S.–China summit, and the U.S. midterm elections.
The secondary market index, Kosdaq, opened 0.19 % higher at 828.42 points and finished the session at 837.65 points, up 1.3 %.
In the foreign‑exchange market, the Korean won appreciated against the U.S. dollar, closing at 1,380.9 won per dollar, a rise of 3.9 won from the previous session.
Article and image source: koreatimes.co.kr
