South Korean stocks surged to their highest level in nearly two and a half years, largely driven by the unveiling of tax incentive plans by the government aimed at boosting the stock market. The benchmark Kospi index rose by 1.11 percent to close at 2,824.94, marking its highest level since January 2022. Notably, institutional and foreign investors were net buyers of shares, while retail investors sold off shares. The market rally was fueled by the government's announcement of the 'Dynamic Economy Road Map' and the unveiling of a tax incentive package for the "Corporate Value-up Program," designed to encourage listed companies to increase shareholder returns. This news led to significant gains in automobile and financial stocks, with bank stocks particularly surging as investors anticipated the adoption of more shareholder-friendly policies thanks to the new tax benefits. Samsung Electronics also experienced a notable increase in its stock price after media reports suggested successful tests of its High Bandwidth Memory chips for use with Nvidia's artificial intelligence processors. Additionally, expectations of a US interest rate cut further bolstered the South Korean market, with the Kosdaq also closing higher, driven by gains in small and medium-sized companies.