The KOSPI index has crossed the 8000-point mark for the first time in history, marking a significant milestone for the South Korean stock market. Once labeled as 'Parkspi' due to its undervaluation, the market is now gaining recognition as a key player globally, driven by the semiconductor and artificial intelligence (AI) boom, along with an influx of foreign capital.
According to the Korea Exchange, the KOSPI reached an intraday high of 8002.62 at 9:13 a.m. on May 15. The index opened at 7951.75, down 0.37% from the previous day, but managed to turn positive and surpass the 8000-point threshold.
Historically, the South Korean stock market has been viewed as undervalued, trapped in a 'Korea Discount' structure. However, recent developments in the AI sector and expectations of a semiconductor supercycle have shifted the market's sentiment dramatically. Strong foreign buying, particularly in major companies like Samsung Electronics and SK Hynix, has propelled the index upward.
Improvements in corporate earnings and a trend toward increased shareholder returns have also supported the market's reassessment. Analysts note that major listed companies are enhancing dividends and engaging in stock buybacks, boosting global investor confidence.
The financial investment sector is now focusing on the potential for the South Korean stock market to join the ranks of global core markets following the KOSPI's breakthrough of 8000 points. There are expectations that it could rise to become one of the top five markets globally in terms of market capitalization and trading volume, alongside the U.S., China, and Japan.
Recently, the market capitalization of the South Korean stock market surpassed that of Taiwan. As of May 11, the Korea Exchange reported a market capitalization of 7084 trillion won, which translates to approximately $4.81 trillion when using an exchange rate of 1472 won to the dollar. In contrast, Taiwan's market capitalization was about $4.34 trillion.
However, concerns remain regarding valuation pressures due to the rapid rise, U.S. interest rate policies, and fears of a global economic slowdown. Despite these challenges, there is a prevailing sentiment that global investors are viewing the South Korean stock market more favorably than in the past.
A financial industry insider stated, "The KOSPI's breakthrough of 8000 points signifies more than just a record; it indicates that the South Korean stock market is being re-evaluated as a global center rather than just an emerging market."
* This article has been translated by AI.
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