South Korea’s benchmark KOSPI index reached a historic milestone, breaching the 8,700 level in intraday trading for the first time ever. The index touched 8,712.34 before closing at 8,689.45, up 1.4% from the previous session, driven by a surge in semiconductor and technology shares. Foreign investors poured in approximately 1.2 trillion won ($900 million) by midday, underscoring robust global appetite for Korean equities.
The rally is largely fueled by the artificial intelligence boom, which has dramatically lifted earnings for chipmakers like Samsung Electronics and SK Hynix. Samsung’s stock has skyrocketed 465% over the past 12 months, reaching a market cap of $1.38 trillion, while SK Hynix rallied nearly 1,000% in the same period, joining the trillion-dollar market club after reporting a 198% year-over-year revenue surge to 52.58 trillion won in Q1. LG Electronics also hit a record high after announcing a partnership with Google.
From its 2022 low of 2,132, the KOSPI has surged roughly 300%, with the climb from 7,000 to 8,700 taking just over ten months. The index has gained over 18% year-to-date, supported by strong exports, a recovering Chinese economy, and expectations that the Bank of Korea will keep monetary policy accommodative. Although the price-to-earnings ratio remains below historical averages, some analysts warn of a potential reversal as the index enters what the Wyckoff Theory identifies as distribution and markup phases. Nevertheless, trend-following indicators suggest momentum could carry the index toward the 10,000 level.
