s on Wall Street and prospects for improved business cooperation between the two Koreas. The Korea Composite Stock Price Index rose 51.42 points, or 2.6 percent, to close at 2,014.09, easily surpassing the earlier record close of 2,004.22 in late July. It was the Kospi's seventh straight gain.
Foreign investors turned net buyers for the first time in five sessions, with purchases of 615.6 billion won (US$673 million; ��474.5 million).
Investors were also encouraged by gains overnight in New York, where the Dow Jones industrial average rose 191.92, or 1.38 percent, to a record 14,087.55.
Market sentiment was boosted by South Korean President Roh Moo-hyun's visit to North Korea. Roh embarked Tuesday on a three-day trip to North Korea for only the second summit between the two sides since they were divided after World War II.
Construction companies and steelmakers led gainers Tuesday on hopes for increased business opportunities in North Korea as a result of the inter-Korean summit, analysts said.
Hyundai Engineering & Construction Co., a former unit of Hyundai Group, which has led North Korean projects in the past, rose 5.8 percent to 95,000 won, while GS Engineering and Construction Corp. surged 8 percent to 175,500 won.
Posco, South Korea's largest steelmaker, soared 12.3 percent to 765,000 won.
South Korean financial markets will be closed Wednesday for a national holiday.
In currency trading, the South Korean won paused in its latest rally against the U.S dollar as suspected central bank intervention helped the greenback recover early losses resulting from strong gains in stocks, market participants said.
The dollar hit an intraday low of 913 won, its lowest since Oct. 2, 1997, as South Korean shares surged.
But the U.S. currency rebounded toward the close, boosted by suspected dollar purchases by the Bank of Korea at around 913.70 won. Traders estimated the central bank bought about US$200 million (��141 million) via a few foreign banks.
South Korea fears excessive won strength, which can make the country's products more expensive in overseas markets.
The dollar ended at 913.90 won, up from 913.70 won Monday.
