On the afternoon of December 20, as the KOSPI index fell below the 2,400 level during intraday trading, the closing price of the KOSPI is displayed on the status board in the dealing room of Hana Bank in Jung-gu, Seoul. (Yonhap)
SEOUL, Dec. 25 (Korea Bizwire) — Taiwan’s stock market has emerged as the top performer among Asia-Pacific’s major indices in 2024, while South Korea’s benchmark Kospi index lags near the bottom, weighed down by domestic and global challenges.
According to CNBC, Taiwan’s Taiex index surged 28.85% this year through December 23, leading gains among 11 key regional indices. In contrast, the Kospi fell by 8.03%, ranking among the weakest performers alongside Malaysia’s Jakarta Composite Index, which slipped 2.42%.
Bloomberg data placed the Kospi at 76th out of 87 Asia-Pacific indices, with the tech-heavy Kosdaq performing even worse, ranking last with a 21.62% decline.
The stark contrast between Taiwan and South Korea stems from differing drivers in the tech sector. Taiwan Semiconductor Manufacturing Company (TSMC), which accounts for 38% of Taiwan’s stock market capitalization, saw its shares soar 82.1% this year, buoyed by the global artificial intelligence (AI) boom.
In contrast, Samsung Electronics, South Korea’s largest company, struggled in the competitive high-bandwidth memory (HBM) market, leading to a 31.8% decline in its stock price.
Domestic political uncertainty and external economic pressures further complicated South Korea’s outlook. CNBC highlighted that President-elect Donald Trump’s proposed tariffs, combined with South Korea’s internal political instability, added to market uncertainties.
Paul Kim of Eastspring Investments noted potential headwinds for South Korea’s export-reliant economy, particularly in key sectors like IT hardware and automobiles.
Nomura forecasted divergent monetary policy trends in Asia for 2025, predicting that export-heavy nations like South Korea and China would adopt more accommodative policies to address external challenges.
However, the firm warned that South Korea’s growth might still face headwinds, particularly from weaker exports due to U.S. tariffs and slowing demand in the semiconductor cycle.
Despite these concerns, DBS Bank expressed optimism about the global semiconductor market, suggesting the current expansion cycle could extend into late 2025, offering some relief to South Korea’s struggling tech sector.
As Asia braces for potential volatility from U.S. trade policies, China’s overcapacity issues, and semiconductor market fluctuations, Taiwan’s strong performance underscores the growing divide between the region’s winners and losers in an increasingly AI-driven global economy.
Ashley Song (ashley@koreabizwire.com)
