Samsung Electronics and SK hynix are set to report second-quarter earnings this week, a critical test for the momentum behind South Korea's benchmark Kospi index.

The results will reveal whether the sector's recent recovery is sustainable or if headwinds persist in the memory chip market.

The Kospi has extended a multi-day rally, driven by strong performance in the technology sector.

Domestic investors have aggressively targeted undervalued semiconductor names, pushing the index higher after a recent downturn.

The advance reflects growing confidence ahead of the earnings releases, which are expected to provide clarity on demand trends and pricing power.

Adding to the week's activity, SK hynix is scheduled to list its American Depositary Receipts (ADRs).