South Korean stocks closed at an all-time high Wednesday, with market gains led by the tech sector. 

This increase came amid growing speculation that President Lee Jae Myung may reverse the controversial capital gains tax hike proposal.

The benchmark Korea Composite Stock Price Index(KOSPI) rose 54-point-48 points, or one-point-67 percent, Wednesday to close at a record high of three-thousand-314-point-53.

The tech-heavy KOSDAQ gained eight-point-18 points, or zero-point-99 percent, to close at 833.

Investors came to the market with expectations that President Lee may withdraw the proposal to lower the capital gains tax threshold for stock investments, which was set to re-classify a "large shareholder" from five billion won to one billion won as part of his "KOSPI 5,000" initiative. 

The president is expected to outline his position during a press conference marking the 100th day since his inauguration on Thursday.