Seoul: South Korea's benchmark Korea Composite Stock Price Index (KOSPI) briefly soared above the 8,000-point mark for the first time on Friday, driven by ongoing optimism surrounding artificial intelligence (AI) and strong earnings from major technology firms.
According to Yonhap News Agency, the index's rapid ascent to 8,000 points occurred just seven trading sessions after surpassing the 7,000-point threshold on May 6. The KOSPI reached a new peak of 8,001.4 at 9:15 a.m., before slightly retreating in early morning trade. Significant investments in AI-related stocks, including Samsung Electronics Co. and SK hynix Inc., have propelled the index to this historic level, though some analysts caution about a potential bubble arising from the new technology.
The AI boom has significantly boosted shares of Samsung Electronics and SK hynix, contributing to the KOSPI's impressive performance. As of Friday, the index has surged approximately 90 percent since the beginning of the year, establishing it as the top-performing index globally.
The market capitalization of South Korean stock markets exceeded 7,000 trillion won (US$4,672 billion) in the previous week, with the combined market value of Samsung Electronics and SK hynix surpassing 3,000 trillion won. The KOSPI previously reached the 3,000-point mark on June 20, 2025, and crossed 4,000 points on October 27, 2025. It hit 5,000 points in intraday trading on January 22, touched 6,000 points on February 25, and 7,000 points on May 6.
Historically, the KOSPI was dubbed the "Boxpi" by local investors due to its limited trading range, but the recent surge may indicate a shift in the fundamentals of the local stock market, according to some analysts. Choi Hyun-jae, a senior researcher at Yuanta Securities Korea, highlighted the KOSPI's rise as a "sea change" in the Korean stock market. Choi anticipates that the AI-fueled rally in semiconductor stocks will continue to drive the KOSPI's record-breaking trend, potentially forecasting a bull market reaching 10,000 points.
Other analysts concur that the KOSPI has the potential for further growth due to its "structural change." Park Yeon-joo, a senior analyst at Mirae Asset Securities, noted that the surge signifies considerable profits earned by the Korean semiconductor industry, with expectations of rising profits for AI-related stocks as demand for AI data centers grows.
Lee Jong-hyung, a senior analyst at Kiwoom Securities Co., interpreted the KOSPI's breach of the 8,000-point mark as evidence of structural changes in the stock market. Lee emphasized that the bull market has been bolstered by robust earnings from major chipmakers and structural policy adjustments within the stock markets.