SEOUL — The South Korean equity market reached an unprecedented milestone on Monday, with the benchmark KOSPI briefly surging past the 5,900-point threshold for the first time in history. While the day ended with a record-high closing, the initial euphoria was tempered by a late-session retreat, highlighting the persistent "Trump Risk" that continues to haunt global financial markets.

A Historic Breakthrough
On February 23, 2026, the KOSPI closed at 5,846.09, up 37.56 points (0.65%) from the previous session. This marked the third consecutive day of gains for the index. The momentum was even more dramatic during early trading hours when the index spiked by 2.12%, hitting an intraday peak of 5,931.86.

The rally was part of a broader "East Asia surge," with Hong Kong’s Hang Seng Index climbing over 2% and other regional markets following suit. This bullishness is largely attributed to a perceived weakening of the U.S. administration’s aggressive tariff policies and a burgeoning "Exodus from America" sentiment among global investors.

The "Anti-Tariff" Tailwinds
Market analysts point to a recent legal setback for the Trump administration as the primary catalyst for the won’s strength and the stock market's ascent.

Legal Roadblocks: The U.S. Supreme Court’s recent ruling that certain reciprocal tariffs are unconstitutional has dented the momentum of the "America First" trade agenda.
Currency Shifts: The U.S. Dollar weakened following the ruling. In Seoul, the KRW/USD exchange rate dropped by 6.6 won, closing at 1,440 won per dollar.
Negotiation Power: "The legal basis for President Trump’s indiscriminate reciprocal tariffs has vanished," noted Lee Kyoung-min, a researcher at Daishin Securities. "This provides South Korea with significantly more leverage in bilateral trade negotiations."
Kim Doo-un, a researcher at Hana Securities, added that the continued issuance of tariff-related executive orders is ironically creating downward pressure on the dollar. This is driving capital away from U.S. assets and toward Asian markets, which are seen as undervalued alternatives.

The "Plan B" Threat and Market Volatility
Despite the record-breaking numbers, the atmosphere on the trading floor remains anxious. The intraday volatility was stark; the KOSPI surrendered a large portion of its early 2% gains by the closing bell, tracking a dip in U.S. stock futures.

The volatility was even more pronounced in the digital and commodity sectors:

Bitcoin: Plunged nearly 5%, dropping below the $65,000 mark.
Gold: Surged toward $5,200 per ounce, signaling a desperate flight to safety among investors.
The unease stems from President Trump’s transition to "Plan B." Following the court ruling, the administration has invoked Section 122 of the Trade Act, which allows for a 15% global tariff under the guise of national security or balance-of-payments emergencies.

Geopolitical Tensions and the "Oil Factor"
Experts warn that the economic pressure might lead to heightened military tensions. As the administration seeks to offset the potential economic blowback of its tariff policies, there are growing fears of military intervention in the Middle East.

"If U.S. Treasury yields, which are already unstable, continue to rise, it will place a massive burden on both the U.S. and global financial markets," warned Park Sang-hyun, a researcher at iM Securities. He further suggested that the probability of the U.S. pursuing military operations against Iran has increased, as the administration looks for ways to reassert dominance and distract from domestic legal hurdles.