South Korean shares closed higher on Thursday, tracking overnight gains in the US markets.

The Korea Composite Stock Price Index, or Kospi, was up by 30.68 points, or 1.2%, to close at 2,527.49. The Kosdaq also increased by 12.63 points, or 1.8%, to end at 724.24.

In economic news, the Bank of Korea decided to keep its base rate unchanged at 3% on Thursday, citing intensified downside risks to economic growth and increased exchange rate volatility.

Only seven of 34 economists in a Reuters poll predicted the outcome, while 27 expected a 25-basis-point rate cut to stabilize a struggling economy amid risks from political uncertainty.

In a Thursday news release, the Monetary Policy Board said that while inflation has stabilized and household debt continues to slow, uncertainties tied to domestic political developments and global economic policies have increased.

Consumer inflation hit 1.9% in December 2024 due to higher petroleum prices, while core inflation edged down to 1.8%. Inflation is expected to stay stable amid weak demand, but risks remain from high exchange rates, global oil price volatility, and economic uncertainties.

The Board emphasized the need to monitor domestic and external conditions before considering further adjustments.

In corporate news, Samsung Electronics (KRX:005930) and IBM collaborated to provide mission-critical (MCX) solutions for the UK's Emergency Services Network (ESN) under the Home Office's User Services initiative, Samsung said.

This project is Samsung's first major MCX project in the UK, banking on its expertise from public safety deployments in the US and South Korea. The company's MCPTX solution will allow real-time multimedia sharing, improving first responders' situational awareness and responsiveness during emergencies.

Shares of Samsung Electronics rose more than 1% at market close on Thursday.