S. Korea stocks hit record as Kospi tops 5,000 for first time
South Korea’s benchmark stock index reached the 5,000 level for the first time on record, achieving a target set by President Lee Jae Myung, driven by strong AI-related demand in the country’s technology-heavy market.
The Kospi Index rose as much as 2.2 percent to a peak of 5,019.54 before trimming gains to close at a record 4,952.5, News.Az reports, citing Bloomberg.
The rally was led by advances in Samsung Electronics Co. and SK Hynix Inc., South Korea’s two largest companies by market value.
Over the past 12 months, the Kospi has surged 94 percent, making it the world’s best-performing stock index during that period.
The rally highlights Korea’s shift from a cyclical export market to a core beneficiary of the global AI boom, thanks to its dominance in memory chips critical for data centers.
The latest leg higher in Samsung Electronics and SK Hynix came after Nvidia CEO Jensen Huang said multitrillion‑dollar investments are needed to build global AI infrastructure. Crossing 5,000 also marks a political milestone, reinforcing President Lee’s pledge to tackle governance shortcomings that have long weighed on valuations.
Thursday’s rally would put South Korea’s market cap — at around $3 trillion in the previous session — close to Germany’s at $3.1 trillion. It’s also rapidly closing in on Taiwan, where Taiwan Semiconductor Manufacturing Co.’s dominance in chips has driven valuation higher.
Korea’s benchmark rose in all but one session in January, eking out gains earlier this week even as US President Donald Trump escalated his rhetoric over Greenland and threatened tariffs. Thursday’s gain was part of a regional relief rally after Trump announced a “framework” deal with NATO regarding Greenland. The MSCI Asia Pacific Index advanced as much as 1.1%.
Meeting with reporters this week, President Lee emphasized that he’s not trying to artificially inflate stock prices but to normalize the market. He added that investments should be made responsibly.
Kospi’s gains narrowed in the afternoon as foreigners and local funds sold, and as Hyundai Motor Co., now Korea’s third-largest stock, reversed to a loss.
Similar news
