Heat wave tops 41°C as KOSPI stages record 18% rally, exports hit second-highest on record
Plus: Indonesia's president signals willingness to visit North Korea, South Korea deepens critical minerals ties with Argentina.
TL;DR
- KOSPI surged 18% in largest single-day percentage gain ever, recovering from 10.8% crash as foreign buying resumed
- Yangsan hit 41.6°C for fourth consecutive day, breaking modern temperature records; KBO baseball league allowed game delays
- South Korea's July exports reached second-highest on record at $98.89 billion, driven by strong memory chip demand
- Indonesian President Prabowo signaled willingness to visit North Korea for dialogue after request from President Lee
Politics
Prabowo signals North Korea dialogue opening; Seoul deepens Latin America ties
Indonesia's president indicates willingness to visit Pyongyang, while South Korea pursues critical minerals cooperation with Argentina.
Indonesian President Prabowo Subianto said he would visit North Korea to open dialogue at the request of South Korean President Lee Jae-myung, a proposal Lee made during Prabowo's visit to Seoul in April. Lee has sought to ease tensions with Pyongyang since taking office, though North Korea has rebuffed repeated overtures and declared South Korea a "hostile nation" in 2024 (via The Korea Herald).
Seoul and Buenos Aires agree on critical minerals. South Korea and Argentina reached an agreement to enhance cooperation on critical minerals, extending Lee's Latin America engagement that has prioritized diversifying the country's supply chains beyond traditional trading partners (via The Korea Times).
Business and economy
July exports hit second-highest on record at $98.89 billion
Memory chip demand propels outbound shipments to second-best level in history.
South Korea's July exports totaled $98.89 billion, the second-highest monthly figure on record, riding a surge in global demand for memory chips as artificial intelligence deployment accelerates worldwide. The figure underscores the country's leverage in semiconductor production at a moment when AI infrastructure buildout is ramping up globally (via The Korea Herald).
Markets
KOSPI stages record 18% rally, marking largest single-day percentage gain ever
South Korean benchmark index surges over 1,000 points on July 31, reversing course after 10.8% crash earlier in the week.
South Korea's KOSPI benchmark index surged 18% to close around 6,590 on July 31, marking its largest single-day percentage gain ever recorded as foreign institutional investors returned to buying after a chaotic week. The rally reverses the 10.8% crash that hit on July 28 when news of China's deep ultraviolet chipmaking advances sparked a semiconductor selloff (via The Korea Herald).
SK chairman makes first direct hynix buy. Chey Tae-won, chairman of the SK Group conglomerate, purchased SK Hynix shares directly on July 31, a rare move signaling confidence in the memory chipmaker during a period of extreme market volatility (via Business Korea).
Weather and disasters
Yangsan breaks all-time heat record at 41.6°C; KBO allows game delays
Southeast city swelters through fourth consecutive day above 40°C as nation endures extreme temperatures.
The southeastern city of Yangsan recorded 41.6°C at 2:08 p.m. on August 1, marking the highest temperature ever recorded under South Korea's modern weather observation system, which dates to 1904. The mercury topped 40°C in the city for the fourth straight day, shattering records as an intense heat wave grips the peninsula (via The Korea Herald).
Baseball league allows up to one-hour game delays. The Korean Baseball Organization (KBO) permitted all venues except Seoul's Gocheok Sky Dome to postpone games up to an hour, while calling off two games outright in the hardest-hit regions where heat wave warnings are in effect (via The Korea Herald).
Technology
LG AI Research unveils 750 billion-parameter AI model
LG enters the large language model space with a significant new neural network.
LG AI Research announced the development of a 750 billion-parameter artificial intelligence model, marking the conglomerate's entry into large language model development at a scale competitive with global AI leaders (via Business Korea).
Entertainment
Spider-Man breaks K-box office record; Jimin hits 2.5 billion Spotify streams
Hollywood blockbuster and BTS solo release dominate screens and charts across South Korea.
"Spider-Man: Brand New Day" reached 2 million admissions in just three days of release, breaking the record for fastest 2026 film to hit that milestone and dominating Korean box offices. The film outpaced all other releases this year in its speed to the mark (via The Korea Herald).
Jimin's solo track hits 2.5 billion Spotify milestone. BTS member Jimin's solo single "Who" surpassed 2.5 billion streams on Spotify, becoming his first solo release to reach the threshold and cementing his status as a major solo act alongside his group commitments (via The Korea Herald).
Korean cartoonist wins Eisner Award. Cartoonist Sanho's graphic novel "Purgatory Funeral Cakes" won the Eisner Award for Best U.S. Edition of International Material—Asia, marking the first time a Korean graphic novelist has taken home the prestigious prize (via The Korea Times).