South Korean stocks climbed for a fourth straight day on Thursday as the US Federal Reserve kept the benchmark interest rate unchanged and tensions from the Israel-Iran conflict continue to flare up.

The Korea Composite Stock Price Index or Kospi rose by 5.55 points, or 0.19%, to end at 2,977.74. The Kosdaq also increased 2.78 points, or 0.36%, to close at 782.51.

In economic news, the Ministry of Trade, Industry and Energy (MOTIE) on Thursday unveiled a 495.6 billion won supplementary budget proposal focused on revitalizing domestic demand, fostering future industries, and enhancing export competitiveness.

Key allocations include a 10% rebate program for high-efficiency appliances (326.1 billion won), rooftop solar expansion (111.8 billion won), and AI solution development (12.8 billion won).

Additional funds target industrial crisis regions, AI-based pharmaceutical systems, and support for export items like power equipment and K-culture goods, the trade ministry said.

In corporate news, LG Electronics (KRX:066570) may revive the initial public offering (IPO) of its Indian unit as early as September, with a potential listing in the fourth quarter, Bloomberg reported.

The IPO, previously paused in April due to market volatility, could raise to $1.7 billion, though investors had pushed back on the valuation. The company plans to reapply its draft prospectus with updated financials after summer, the report said.

The final IPO timing remains subject to market conditions, it said.

Shares of LG Electronics fell nearly 1% at market close.