South Korean stocks soared more than 5% on Monday, closing at a record high and nearing the 7000-point threshold. Investors actively purchased semiconductor shares while awaiting developments in U.S.-Iran peace talks. The South Korean won also strengthened significantly against the U.S. dollar.

The Korea Composite Stock Price Index (KOSPI) climbed 338.12 points, or 5.12%, to finish at 6936.99, marking a new all-time high.

The benchmark index opened 2.79% higher, boosted by U.S. President Donald Trump's overnight announcement of a plan to guide vessels not involved in the Iran conflict through the Strait of Hormuz starting this week.

Subsequently, a senior Iranian official warned that Tehran would view any U.S. interference in the Strait of Hormuz as a violation of the ceasefire agreement.

Nevertheless, driven by foreign and institutional investors, the KOSPI continued its upward trend in the afternoon session.

The index surpassed the 5000-point mark in late January and broke through the 6000-point level in February.

After a sharp decline following the escalation of U.S.-Iran tensions in late February, the KOSPI fully recovered its losses. Currently, buoyed by sustained optimism around the artificial intelligence boom and expectations for the reopening of key shipping routes, the index is approaching the unprecedented 7000-point milestone.