Korean stock market value hits $4.1 trillion
The combined market capitalization of South Korea's Kospi and Kosdaq exchanges reached a record 6,101.1 trillion won ($4.1 trillion) on Monday, nearly
South Korea's stock market value reached 6,101.1 trillion won ($4.1 trillion) on Monday, according to Korea Exchange data. The benchmark Kospi index jumped 2.2% to a record close of 6,615.03, while the smaller Kosdaq rose 1.9% to 1,226.18.
This marks a dramatic turnaround from last year. When the Kospi hit a low of 2,293.70 on April 9, 2025, the combined market value of the two exchanges was less than 2,211 trillion won. The markets have since expanded 2.76 times in value.
Foreign and institutional investors drove the advance. They bought a net 888.0 billion won and 1.1 trillion won of Kospi shares, respectively. Retail investors sold a net 1.9 trillion won, taking profits after the rapid climb.
Chip Giants Lead Rally
Semiconductor stocks again led the market higher. Samsung Electronics Co. rose 2.3% to 224,500 won. SK Hynix Inc. jumped 5.7% to 1,292,000 won.
The gains followed strength in US technology shares on Friday. This lifted sentiment toward Korean chipmakers.
The advance has left the market highly concentrated. At Monday's close, Samsung Electronics, its preferred shares, and SK Hynix were valued at about 2,361.8 trillion won. This equals 43.6% of the Kospi and 38.7% of all listed Korean stocks.
That concentration has sharpened debate. Analysts question whether the AI-driven semiconductor supercycle can keep lifting the market, or if investors are vulnerable to a reversal.
Huh Jae-hwan, an analyst at Eugene Investment & Securities, said the semiconductor rally is too strong to be viewed as a routine early-cycle rebound. He stopped short of calling it a bubble. Huh said the current move more closely resembles the post-pandemic technology boom of 2020 and 2021. This time, he said, the structural shift driven by AI-related demand appears stronger.
Broader Market Strength
Other strategists argue the rally isn't only about the two chip giants. Lee Kyung-min, an analyst at Daishin Securities, said Samsung Electronics and SK Hynix have an overwhelming influence on earnings forecasts, but other sectors cannot be ignored.
Lee provided operating profit forecasts for Kospi-listed companies.
| Year | Total Operating Profit (trillion won) | Excluding Samsung & SK Hynix (trillion won) |
|---|---|---|
| 2024 | 221.5 | 165.3 |
| 2025 | 270.9 | 180.8 |
| 2026 | 778.9 (forecast) | 233.6 (forecast) |
| 2027 | 968.3 (forecast) | 274.3 (forecast) |
"Even without Samsung Electronics and SK Hynix, companies are doing well enough," Lee said. He noted the two chipmakers are performing at such historically strong levels that the rest of the market only looks weak by comparison.
Rising Caution
Despite the gains, caution is rising. The Kospi 200 Volatility Index, South Korea's so-called fear gauge, closed up 2.6% at 54.95 on Monday. It had fallen to 46.54 on April 14.
The rise suggests investors are becoming more wary of the rally's pace. This comes after the Kospi erased its Iran-related losses and closed above 6,600 for the first time.
