South Korean stocks closed above the 5,600-point level for the first time on Thursday, driven by strong gains in semiconductor and other major technology shares, alongside growing optimism surrounding artificial intelligence (AI).

The Korea Composite Stock Price Index (KOSPI) rose by 170.24 points, or 3.09%, finishing at a record high of 5,677.25. This surpassed the previous record of 5,522.27 set on February 12.

Trading volume for the session reached 1.17 billion shares, with a total value of 28.59 trillion won (approximately $197.6 billion). Advancing shares outnumbered decliners, with 666 stocks rising and 231 falling.

Following a three-day Lunar New Year holiday, the index opened at a record high on Thursday and continued its upward trend, supported by significant buying from institutional investors.

During the session, institutional investors purchased a net 1.64 trillion won worth of stocks. In contrast, foreign and retail investors engaged in profit-taking, selling net amounts of 918.03 billion won and 860.76 billion won, respectively.

An analyst noted that with major U.S. AI firms like NVIDIA and Broadcom scheduled to release their earnings reports starting next week, investor preference for chip-related stocks is expected to persist.

The analyst added that market conditions are likely to remain favorable, citing increasing pressure on listed companies to enhance shareholder returns ahead of annual general meetings next month and the growing likelihood of amendments to the Commercial Act being passed.