South Korea’s KOSPI index surged to a record high, jumping nearly 2% to 5,019.54 points, marking its first crossing of the 5,000 level. This surge was primarily driven by strong performances in the chip and auto sectors. SK Hynix and Samsung Electronics, both major memory chip manufacturers, saw their stocks rise between 3% and 4% amid plans to cut production to boost prices and margins. The increase in artificial intelligence-fueled demand has been a significant factor in their growth.

The market's optimism was further boosted by potential exemptions from U.S. tariffs, given the major investments of these companies in the country. Hyundai Motor also contributed to the rally, hitting a record high with an 87% rise in January. Investors are enthusiastic about Hyundai's potential in physical AI and robotics, which has driven its stock performance.

Despite weak Q4 economic growth data, investors seem unfazed, focusing instead on the positive outlook for the coming months. Analysts at ANZ predict that growth will improve, with exports expected to benefit from AI demand and a rebound in local construction activity. This positive sentiment suggests that the KOSPI's record high may not be a fleeting moment but rather a reflection of underlying strengths in key sectors.

Looking ahead, investors will be watching for further developments in the chip and auto sectors, as well as any updates on U.S. tariff policies. The performance of these key companies will likely continue to influence the KOSPI's trajectory in the near future.