Seoul: South Korea's benchmark stock index, the Korea Composite Stock Price Index (KOSPI), has experienced the most significant growth among the Group of 20 (G20) nations' key equity indices this year. This surge is attributed to substantial foreign investments in semiconductors and other major domestic stocks, as reported by recent data.
According to Yonhap News Agency, KOSPI has risen by 68.5 percent, or 1,643.89 points, between January 2 and the current date. The index was the only one among the G20 to achieve more than a 60 percent increase over the specified period. In comparison, Japan's Nikkei 225 index recorded a 26.61 percent rise during the same ten-month timeframe.
The remarkable growth of KOSPI was largely fueled by foreign investors, who have been actively purchasing substantial shares in market-leading sectors, including semiconductors. Data from the Korea Exchange (KRX) highlighted that foreign investors purchased stocks worth 5.2 trillion won (approximately US$3.6 billion) in the local market from the beginning of the month to last Friday. This figure significantly exceeds the 2.5 trillion won bought by institutional investors.
Choi Kwang-hyuk, an analyst at LS Securities Co., commented, "Foreign investors became active net buyers amid anticipation that semiconductors will benefit from a turnaround in the artificial intelligence investment cycle and a positive outlook for the government's stock market boosting measures."
On Monday, KOSPI closed at an unprecedented high of 4,042.83 points, breaking the 4,000 mark for the first time. Major stocks also reached new heights; Samsung Electronics surpassed the 100,000 won mark, and SK hynix closed up 4.9 percent at 535,000 won.
Analysts predict that KOSPI's upward trend will persist, although they caution against potential short-term market fluctuations. Kim Young-il, an analyst at Daishin Securities Co., noted, "The KOSPI is expected to maintain its uptrend until the early half of 2026. But as we enter a phase where investors start to verify the momentum that has driven the upward trend in global stock markets, local stocks will inevitably experience short-term fluctuations or will have to absorb selling pressures."