The benchmark Korea Composite Stock Price Index(KOSPI) closed above 3,200 points for the first time in almost four years Monday, driven by stimulus hopes, including cash handouts despite renewed U.S. tariff threats from U.S. President Donald Trump.

The KOSPI increased 26-point-26 points, or zero-point-83 percent, to close at three-thousand-202-point-03, the highest closing since September 6, 2021.

Despite renewed U.S. tariff threats as Trump sends letters threatening duties on key trading partners including the European Union and Mexico, investors remained cautiously optimistic ahead of the August 1 negotiation deadline, driving a rally in consumer and retail stocks fueled by expectations of government-led cash handouts.

Lotte Shopping and Shinsegae increased three-point-07 percent and six-point-57 percent respectively while beauty brand AmorePacific rose five-point-12 percent, LG H&H rose two-point-88 percent and carmaker Hyundai Motor jumped four-point-33 percent with its sister Kia advancing two-point-18 percent.

The tech-heavy KOSDAQ fell one-point-one points, or zero-point-14 percent, to close at 799-point-37.