South Korean shares closed slightly higher on Thursday as investors appeared optimistic after the Bank of Korea decided to keep its base rate unchanged at its latest rate-setting meeting. The central bank's better-than-anticipated outlook on the domestic economy buoyed sentiment.

The Korea Composite Stock Price Index or Kospi rose 9.16 points, or 0.3%, to end at 3,196.32. The Kosdaq decreased by 3.29 points, or 0.4%, to close at 798.43.

In economic news, the Bank of Korea on Thursday kept its base rate steady at 2.50% for the inter-meeting period as uncertainty builds on economic growth outlook amid the impact of US tariffs, the South Korean central bank said in a same-day release.

The central bank said the decision was prompted by the expectation of a gradual slowdown in the global economy despite stable inflation and economic growth, and amid the effects of US tariffs on inflation across countries.

On the domestic front, economic growth has improved due to stronger consumption and outbound shipments, led by the semiconductor sector, although construction and manufacturing remain weak.

A supplementary budget and improved consumer sentiment are expected to support demand, with gross domestic product projected at 0.9% in 2025 and 1.6% in 2026. Inflation is expected to remain steady around 2%, with consumer prices forecast at 2% in 2025 and 1.9% in 2026, although risks are expected to emerge from trade tensions, oil prices, and exchange rates.

Looking ahead, market moves will depend on US-China trade negotiations, tariff prospects, and monetary policy changes.

In corporate news, SK Hynix (KRX:000660) began supplying its high-heat dissipation mobile DRAM product that uses High-K Epoxy Molding Compound (EMC), the South Korean chipmaker said in a Thursday press release.

The product improves thermal conductivity by 3.5 times as compared to existing materials, and enhances vertical heat resistance by 47%, the release said.

Shares of SK Hynix rose more than 3% at market close.