The benchmark KOSPI rose more than 3% to around 6,720 on Tuesday, rebounding from an almost three-month low as bargain hunting emerged in beaten-down technology stocks following last week's sharp selloff.
Samsung Electronics and SK Hynix led the recovery, advancing over 4% and 3%, respectively.
At the same time, South Korea's exports surged 52.3% in the first 20 days of July, fueled by a 180% jump in semiconductor shipments amid sustained AI demand, further boosting confidence in the sector's earnings outlook.
Other notable gainers included SK Square (3.0%), Kia Corporation (1.1%), Shinhan Financial Group (2.2%), Hanwha Aerospace (4.1%), SK Inc. (1.4%), and HD Hyundai Electric (1.3%).
Meanwhile, lingering concerns over escalating tensions in the Middle East continued to weigh on global risk appetite, with rising oil prices and weaker sentiment on Wall Street limiting further gains.