South Korean stocks rallied sharply after news broke that Nvidia CEO Jensen Huang plans to visit Korea, with LG Group and Naver leading gains on expectations of expanded artificial intelligence (AI) cooperation with the U.S. chip giant.
According to the Korea Exchange on Wednesday, LG Electronics (066570.KS) closed up 29.93% at 293,000 won, hitting the daily upper limit and marking an all-time high on an adjusted basis. LG CNS also closed at the upper limit, while LG Innotek rose 28.57%, LG Corp. 26.60%, LG Electronics preferred shares 21.91%, LG Display 11.58% and LG Uplus 7.03%.
The TIGER LG Group Plus ETF, which tracks LG Group affiliates, jumped 22.1%, drawing strong investor interest.
LG Group Stocks Hit Upper Limit on Physical AI Hopes
According to industry and securities sources, Huang is expected to visit Korea after attending GTC Taipei 2026, scheduled for December 1-4 in Taiwan. It would be his first trip to Korea in about seven months, since the APEC CEO Summit in Gyeongju last October.
Industry watchers see a high possibility that Huang will meet with LG Group Chairman Kwang-mo Koo during the visit to discuss expanded cooperation in physical AI and robotics.
LG Electronics is already using Nvidia's robotics platform "Isaac" in developing smart home robots, and recently unveiled "LG Actuator Axium," a robot actuator brand, at CES 2026, signaling its commitment to expanding its physical AI business.
The market is also focusing on the possibility that cooperation could expand across affiliates including the LG AI Research Institute, LG Innotek, LG Uplus and LG CNS.
LG CNS recently unveiled "AgenticWorks," an integrated operating solution for AI agents. Expectations of synergy with Nvidia are growing because the platform aligns with physical AI, which aims to fully automate manufacturing and logistics sites.
"The market is preemptively pricing in the possibility of physical AI platform cooperation with Nvidia," said Lee Kyoung-min, an analyst at Daishin Securities. "Last year's experience, when Samsung Electronics and Hyundai Motor-related stocks surged during Huang's Korea visit, is also influencing investor sentiment."
LG Electronics shares have risen 218.8% year-to-date. Its 12-month return of 305.8%, however, lags Samsung Electronics' 465.1% and SK hynix's 1,000.5%, suggesting room for further upside that has helped propel the stock.
Naver Also Surges on AI Ecosystem Expansion
Expectations of benefits from Huang's visit spread to Naver as well. Naver shares closed at 234,000 won on Wednesday, up 14.15% from the previous session. The stock surged as much as 20.73% to 247,500 won during intraday trading, hitting its highest level this month.
The industry sees a strong likelihood that Huang will also meet with Naver's management to discuss cooperation on AI services and AI infrastructure. The expectation is that Nvidia's AI ecosystem expansion strategy could align with Naver's hyperscale AI business.
Kakao also closed up 4.61% as AI investment sentiment revived. "Since Nvidia effectively serves as the standard platform of the global AI industry, the market is assigning a high premium based on cooperation potential alone," a securities industry official said. "If LG Group and Naver emerge as key partners in physical AI, AI agents and robotics, a re-rating of corporate values would be possible."
AI Tailwind Spreads to DX Firms
AI and smart factory-related stocks also jumped. Hyundai AutoEver rose 24.80% on Wednesday, while Samsung SDS closed up 20.32% at 299,000 won. Samsung SDS surged as much as 29.38% during the session, setting a new 52-week high. POSCO DX rose 5.36%.
The market expects the role of digital transformation (DX) affiliates within each group to expand as the Nvidia-led physical AI era takes off.
Hyundai AutoEver is expected to play a key role in Hyundai Motor Group's humanoid robot development and smart factory construction, while Samsung SDS is seen as a beneficiary of Samsung Electronics' plan to transition to AI-powered autonomous factories.
Some analysts say the rally may not be limited to thematic buying. Nvidia's physical AI ecosystem is expanding into robotics, smart factories and AI agents, which could translate into real business opportunities for related firms.
Some experts, however, caution against potential short-term overheating, given that the actual content of any cooperation has yet to be disclosed.
"The market is currently betting on the cooperation blueprint to be announced rather than on the meeting itself," a financial investment industry official said. "Volatility could expand until specific business cooperation details are confirmed."
