From Bloomberg, February 24:
- South Korea’s equity benchmark, the Kospi Index, has advanced to a record, powered by surging global memory demand and the country’s biggest chipmakers.
- Korea’s stock market capitalization has moved past France’s, with the benchmark now up for 2026, and corporate governance reforms have helped fuel the rally.
- Analysts remain broadly bullish, citing the ongoing memory crunch and sustained AI demand, with some forecasting the Kospi gauge to reach as high as 8,000 in the first half of the year.
South Korea’s equity benchmark has crossed a new milestone just a month after surpassing the once-unthinkable 5,000 mark, as surging global memory demand powers the country’s biggest chipmakers.
The Kospi Index advanced as much as 2.6% to a record 6,123 Wednesday, with Samsung Electronics Co. and SK Hynix Inc. each gaining more than 2%. With the benchmark now up 45% for 2026, Korea’s stock market capitalization has also moved past
France’s, following last month’s overtaking of Germany’s.
Long overlooked by foreign funds despite being undervalued, Korean stocks have now emerged as clear winners in the global market. The so-called “AI scare trade” has proven a boon for the country, where software stocks play only a minor role and hardware manufacturers continue to drive the market higher. Corporate governance reforms have helped fuel the rally, with parliament
to pass a bill later Wednesday requiring companies to cancel treasury shares.
The latest gain is part of a global tech rally following Meta Platforms Inc.’s deal to buy chips and computers from Advanced Micro Devices Inc. to power AI models
“With the Kospi now at 6,000, upside from here is likely to be more incremental, and sustainability will depend on earnings delivery and a meaningful broadening beyond a handful of semiconductor heavyweights,” said Jung In Yun, chief executive officer at Fibonacci Asset Management Global. “Absent that, some consolidation or rotation across sectors wouldn’t be surprising.”....
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