South Korean shares rally on post-election optimism

Kospi rises 2.66% to 10-month high

- JIHOON LEE YOUN AH MOON

South Korean shares climbed yesterday to their highest levels in 10 months, as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus policies and market reforms.

The benchmark Kospi jumped 2.66% to 2,770.84, posting its biggest daily gain in nearly two months and closing at the highest level since Aug 1, 2024.

Mr Lee officially took office as president yesterday, just hours after his victory in a snap election the previous day. His swift rise to power ends six months of political turmoil sparked by former President Yoon Suk Yeol's failed attempt to impose martial law in December, a move that stunned the country and rattled financial markets.

"The inauguration of the new administration resolved political uncertainty," said Kang Jin-hyeok, an analyst at Shinhan Securities.

"And there are expectations that policy drives could be strong, as Lee's Democratic Party holds a majority in parliament," Mr Kang said.