The Korea Composite Stock Price Index exceeded 2,050 points for the first time in two years and two months on Friday.
Powered by 36 straight trading days of foreign buying, the KOSPI closed up 0.58 percent at 2,052.4. Continued buying by foreigners is boosting the won, which closed at W1,060.8 against the dollar, up W2.9 from the previous trading day and the highest in nine months.
Morgan Stanley in a report on Thursday referred to Korea as a "new safe haven" for investment due to improved economic fundamentals since 2008.
China's soaring GDP growth rate this year also buoyed investor sentiment.
China said Friday that its economy grew 7.8 percent year-on-year in the third quarter as expected. It was the highest growth rate for China since the fourth quarter of 2012.