Seoul - Shares surged by a record 12 per cent Thursday on the Seoul stock exchange as a currency swap with the US worth 30 billion dollars and a decreased currency account deficit in South Korea in September boosted investor sentiment.

The local currency spiked 16.5 per cent against the greenback, buoyed by the swap deal and the bullish stock market.

The benchmark Kospi index jumped 115.75 points, or 12 per cent, to close at 1,084.72, its largest ever one-day gain. The index fell more than 20 per cent last week, the biggest loss in two decades.

Advancing issues outpaced decliners 841 to 53.

The swap line is part of the Federal Reserve's efforts to alleviate a credit freeze in some emerging economies, with the US also providing dollars to Singapore, Brazil and Mexico.

The main index of the technology-heavy Kosdaq market rose 30.46 points to 296.05.

On currency markets, the US dollar was quoted at 1,250.00 won, up 177.00 won from Wednesday's closing of 1,427.00 won. (dpa)