South Korean stocks have rebounded from a downturn triggered by the Iran war, with the Kospi index rising 1.2% to exceed 6,200. This recovery is largely attributed to a rally in chipmakers, particularly Samsung Electronics Co. and SK Hynix Inc., which have seen significant gains due to robust demand for semiconductors and advancements in artificial intelligence (AI). The Kospi has surged nearly 50% this year, making it one of the best-performing equity markets worldwide. The initial decline was spurred by rising oil prices amid geopolitical tensions, pushing the market close to a bear territory. However, improved sentiment and fundamental advancements in the semiconductor sector have led to a stabilization. Goldman Sachs has responded by raising its Kospi target to 8,000. Analysts suggest that the South Korean equity market is fundamentally supported by global semiconductor demand and investments in power infrastructure, rather than short-term geopolitical events. SK Hynix's shares rose 3.4% ahead of its earnings report, reflecting optimism about its production of next-generation memory modules for Nvidia’s Vera Rubin platform. Samsung Electronics also reassured investors with an eightfold increase in quarterly profit, indicating strong demand despite external pressures.