The benchmark Korea Composite Stock Price Index (KOSPI) is displayed on a screen at the Korea Exchange, the country’s main bourse operator, on Oct. 27, 2025. (Yonhap)
SEOUL, Oct. 27 (Korea Bizwire) — South Korea’s main stock index has surged faster than any other in the Group of 20 nations this year, propelled by foreign investors betting heavily on the country’s dominant semiconductor industry and other major blue-chip companies.
The benchmark Kospi index has climbed 68.5 percent since Jan. 2, adding 1,643 points through Monday, according to data from Yonhap Infomax. It is the only major G20 equity gauge to rise more than 60 percent so far this year; Japan’s Nikkei 225, the second-strongest performer, is up about 27 percent over the same period.
Analysts attribute the rapid ascent to a renewed wave of global investment into South Korean technology stocks, alongside optimism about government measures to bolster the capital market. Foreign investors purchased 5.2 trillion won, or about $3.6 billion, in local equities this month alone, more than twice the net buying by domestic institutional investors.
“Foreigners have turned aggressive, convinced that semiconductors will benefit from an upturn in the artificial intelligence investment cycle and supportive policy momentum,” said Choi Kwang-hyuk, an analyst at LS Securities.
The rally has pushed the market to a series of milestones. On Monday, the Kospi closed at a record 4,042.83, its first finish above 4,000. Samsung Electronics, the country’s most valuable publicly traded company, topped 100,000 won per share for the first time, while SK hynix jumped nearly 5 percent to 535,000 won.
The Kospi index, along with the stock prices of Samsung Electronics and SK hynix, is displayed at the Korea Exchange’s promotion hall in Yeouido, Seoul, on October 27, 2025 (Yonhap)
Some analysts say the momentum could continue into 2026, though not without turbulence.
“As investors start to reassess whether the forces driving global markets can be sustained, volatility and bouts of selling pressure will be inevitable,” said Kim Young-il of Daishin Securities.
Following the close on Monday, the Korea Exchange held a brief ceremony to mark the record high. Jeong Eun-bo, its chairman, said policy efforts were helping revive sentiment that had been subdued in recent years.
“We should aim for an era in which the Kospi reaches 5,000,” he said, adding that surpassing 4,000 was “just the beginning.”
Ashley Song (ashley@koreabizwire.com)
