South Korea Presidential Election 2025: Korean stocks surge more than 2% after the country’s new president announced

South Korea’s benchmark index surged 2.7% to 2770.84 at close on Wednesday (as of 3:30 p.m. local time) after Lee Jaemyung brought the presidential election to an end with his widely-expected victory at midnight.

The Korea Stock Exchange KOSPI Index opened with a rise of 1.4% after a one-day recess due to the election holiday on June 3, reaching a closing high of 2770.84 – the highest level in over 10 months. The index has gained 20.8% since April lows triggered by concerns over Trump’s reciprocal tariff policies.

Financial stocks saw significant gains today, with Bookook Securities surging more than 22% while Mirae Asset Securities, SKSquares, and Shinyoung Securities rose about 13%, charging the KOSPI higher. 

During his campaign, Lee Jae-myung proposed a series of financial policies, such as customised financial services for the underprivileged and debt relief for small business owners.

Tech stocks are also leading gains among other component stocks. Chip and appliance maker Samsung Electronics gained 1.8% to 57,800 KRW, with the semiconductor manufacturer SK Hynix surged 4.8%, and aero engine-savvy Hanwha Aerospace gained 1.2%.

Lee claimed his presidency and delivered a speech in front of the National Assembly, prioritising the revision of the economy and livelihood to alleviate economic hardship as his second priority in his incoming administration, following the restoration of democracy.

“From the moment my victory is confirmed, I will devote every effort to recovering your livelihoods—quickly and decisively,” he said.

Lee has also promised to boost the economy by increasing government spending, improving corporate governance, strengthening labour protection, and wrapping up the ongoing tariff talks and exchange rate negotiations with the Donald Trump administration, which may contribute to stabilising market sentiment.

The South Korean won strengthened against major currencies on Wednesday, trading at around 1,363 per dollar and 946 per 100 yen as of 19:30 local time.