South Korea’s KOSPI Hits Record Close as Market Cap Rises to World No. 8

The KOSPI closed April 28 up 25.99 points, or 0.39%, at 6,641.02. [Photo=Yonhap]

South Korea’s stock market has overtaken the U.K. to rank eighth globally by market capitalization, driven by a semiconductor rally tied to artificial intelligence. The market’s value has more than doubled in about a year, and analysts say the ranking could rise further as the benchmark KOSPI nears the 7,000 level. <Related article, page 10>

According to the Korea Exchange, the KOSPI on April 28 closed up 25.99 points, or 0.39%, at 6,641.02. It set another record high close after doing so the previous session. The index climbed as high as 6,712.73 intraday, briefly topping 6,700.

With the rally continuing, total market capitalization for South Korea’s exchanges — KOSPI, KOSDAQ and KONEX combined — reached 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 cap, based on closing prices, rose 45% from the start of the year through April 27. That pushed it past the U.K., which rose 3% over the same period to $3.99 trillion, placing South Korea eighth worldwide. 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 U.S. ranks first at $75.4004 trillion, followed by China (mainland), Japan, Hong Kong, India, Canada and Taiwan. From India in fifth to the U.K. in ninth, markets are clustered around $4 trillion, leaving room for further shifts if South Korean shares keep rising.

Bloomberg cited heavy concentration in AI semiconductor-related stocks and policy momentum as key drivers. Samsung Electronics and SK hynix, the top two companies by market value in South Korea, led the rally as global money moved into AI-linked firms. Corporate governance reforms and pro-market policies also supported gains. The two companies account for more than 40% of the KOSPI’s total market capitalization.

Major global investment banks and South Korean brokerages have forecast further gains, citing improving earnings at leading companies. Some projections extend beyond 7,000 to as high as 8,000. Hana Securities set a second-half KOSPI 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 of up to 8,000.

Lee Kyung-min, a researcher at Daishin Securities, said South Korea’s market rose to eighth globally on an intraday basis, adding that as rotation spreads into areas such as robotics and construction and the market enters earnings season, stock-by-stock divergence is becoming more pronounced.

* This article has been translated by AI.