The KOSPI rose more than 1 percent on March 25 to reclaim the 5,640 level, as expectations resurfaced for an end to the war between the United States and Iran. The Kosdaq finished higher with gains of more than 3 percent.

The KOSPI ended up 88.29 points, or 1.59 percent, at 5,642.21. It opened at 5,680.33, up 126.41 points, or 2.28 percent, from the previous session, and briefly climbed above 5,700 early on, but pared gains to finish the day.

By investor type, institutions led the index higher with net buying of 2.3212 trillion won. Foreigners and retail investors net sold 1.2930 trillion won and 1.3349 trillion won, respectively.

The top 10 stocks by market capitalisation were mixed.

SK Hynix closed up 0.91 percent at 995,000 won. Hyundai Motor rose 1.83 percent, LG Energy Solution gained 0.38 percent, SK Square added 1.68 percent, Samsung Biologics advanced 2.46 percent, Hanwha Aerospace climbed 4.87 percent and Doosan Enerbility rose 2.50 percent.

Samsung Electronics closed down 0.37 percent at 189,000 won. Kia ended unchanged at the previous day's level.

The Kosdaq rose 38.11 points, or 3.40 percent, to 1,159.55.

In the Seoul foreign exchange market, the won-dollar exchange rate ended at 1,499.7 won, up 4.5 won from the previous session.