South Korea’s stock market has climbed to eighth in the world by market capitalization, overtaking the United Kingdom, as an artificial intelligence-driven semiconductor surge lifted valuations. With the benchmark KOSPI nearing the 7,000 level, some analysts say the ranking could rise further. <Related article, page 10>
According to the Korea Exchange, the KOSPI closed Monday at 6,641.02, up 25.99 points, or 0.39%, from the previous session. It set another record high close after doing so the day before. The index rose as high as 6,712.73 intraday, briefly topping 6,700.
The rally has also pushed up total market capitalization. Combined market value for the KOSPI, KOSDAQ and KONEX stood at about 6,116 trillion won (about $4.16 trillion) at the close. That was up 53.4% from 3,986 trillion won on Dec. 30 last year.
Bloomberg said South Korea’s market capitalization, based on closing prices, rose 45% from the start of the year through April 27. That move put it ahead of the U.K., which rose 3% over the same period to $3.99 trillion, making South Korea the world’s eighth-largest market. As recently as 2024, the U.K. market was about twice the size of South Korea’s, but the gap reversed in a little over a year.
The United States ranks first at $75.4004 trillion, followed by China (mainland), Japan, Hong Kong, India, Canada and Taiwan, Bloomberg said. From No. 5 India to No. 9 the U.K., markets are clustered around $4 trillion, leaving room for further shifts if South Korean shares keep rising.
Bloomberg attributed the gains to heavy concentration in AI semiconductor-related stocks and policy momentum. Samsung Electronics and SK hynix, the top two companies by market value in South Korea, led the rally, reflecting global flows into AI-related firms, it said. Corporate governance changes and other market-friendly policies also supported prices. The two companies account for more than 40% of the KOSPI’s total market value.
Outlooks for the KOSPI remain upbeat. Global investment banks and local brokerages expect the uptrend to continue on improving earnings at major companies. Some forecasts extend beyond “7,000” to “8,000.” Hana Securities set a second-half upper range of 7,540 to 8,470 depending on scenarios. Goldman Sachs set a 12-month KOSPI target of 8,000, and JPMorgan said it sees room up to 8,500. Japan’s Nomura Securities set a first-half target as high as 8,000.
Lee Kyung-min, a researcher at Daishin Securities, said South Korea’s market moved past the U.K. intraday to rank eighth globally. He said rotation into sectors such as robotics and construction is spreading, and as earnings season begins, stock-by-stock differentiation is becoming more pronounced.
* This article has been translated by AI.
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