After falling to the 5,000 level late last month on fears of a U.S.-Iran war, the KOSPI topped the 6,380 level on the 21st, setting a new all-time high. This reflects expectations that the war will not drag on, interest rates being lower than expected, and continued semiconductor strength. With SK hynix's earnings due on the 23rd, optimism is building and expectations for the KOSPI keep rising. However, given the market's high dependence on semiconductors and persistent war-related uncertainty, there are concerns that volatility may increase ahead.

The KOSPI closed at 6,388.47, up 169.38 points (2.72%) from the previous day. It refreshed the intraday and closing all-time highs recorded at the end of February, before the war, after two months. Total market capitalization also hit a record 5,236 trillion won.

On the main board, foreigners were net buyers of 1.3296 trillion won and institutions 737.1 billion won, lifting the index. Individuals were net sellers of 1.9195 trillion won.

Samsung Electronics closed at 219,000 won, up 4,500 won (2.1%) from the previous day, marking a new record closing high after two months, and SK hynix also surged 58,000 won (4.97%) to finish at 1,224,000 won, setting a new record closing high.

So far this month, the KOSPI has jumped 26.45%. The bull run has continued despite war fears. Interest rates, which have not risen as much as expected despite the conflict, and the semiconductor boom are cited as the backdrop.

Kim Hak-gyun, head of research at Shinyoung Securities, said, "When inflation is high and central banks tighten, interest rates ultimately rise and affect markets, but U.S. long-term Treasury yields have not risen as much as expected," adding, "Because the inflation is cost-push, the market largely expects central banks to be patient rather than raise rates."

Overseas markets are rising as well. From the 1st of this month through today, the U.S. Nasdaq (13.03%), Japan's Nikkei 225 (16.23%), and Taiwan's Taiex (18.54%) have each climbed more than 10%, extending their "all-time high" rallies.

In particular, Korea's market is climbing more steeply because it is highly dependent on semiconductors and earnings forecasts are being revised up. Despite the war, last month's exports, led by semiconductors, surpassed $80 billion for the first time on record, confirming rising semiconductor demand, and with Samsung Electronics also reporting strong results, earnings forecasts for Samsung Electronics, SK hynix, and the KOSPI this year have risen sharply. This month, Samsung Electronics has jumped 30.98% and SK hynix 51.67%, lifting the index.

However, the fact that the KOSPI leans on a single industry - semiconductors - and that war-related uncertainty remains high is a variable.

Kim added, "Memory is an industry with large boom-bust cycles and appears to be undervalued," noting, "Excluding semiconductors, the (forward) PER is around 11 times, so excluding semiconductors the Korean market is not exactly cheap."

Kim Jae-seung, an analyst at Hyundai Motor Securities, said, "Uncertainty can expand at any time during the negotiating process," adding, "Even if the war between the U.S. and Iran ends, the era of every nation for itself is only beginning."