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Korean stock market rises to 8th globally, overtakes UK on chip rally
A digital screen at the dealing room of Hana Bank’s headquarters in Seoul, Tuesday, shows KOSPI at 6,710.85, setting a new intraday record. Yonhap
By Jun Ji-hye
KOSPI breaks 6,700 intraday for 1st time
Korea’s stock market has climbed to become the world’s eighth-largest, surpassing Europe’s biggest market, the United Kingdom, amid rallies by heavyweight chipmakers and government-led efforts to boost corporate value, Bloomberg and local analysts said Tuesday.
The benchmark KOSPI is extending its upward momentum, hitting fresh highs despite lingering uncertainties stemming from the Middle East conflict. The index opened 31.77 points, or 0.48 percent, higher at 6,646.80 and maintained its upward momentum, breaking the 6,700 threshold for the first time on an intraday basis. It later pared some gains to close at 6,641.02, up 25.99 points, or 0.39 percent, from the previous session.
Citing its own data, Bloomberg reported that Korea’s total market capitalization jumped 45 percent this year to $4.04 trillion. This surpassed the U.K.’s $3.99 trillion, which rose 3 percent over the same period, lifting Korea to eighth place globally.
The U.K. market was about twice the size of Korea’s as recently as 2024, but the gap has reversed in just over a year.
With market capitalizations from fifth-ranked India through eighth-ranked Korea all hovering around $4 trillion, analysts say Korea could break into the top five if the rally continues.
Bloomberg attributed the surge in Korean equities largely to Samsung Electronics and SK hynix, the country’s two largest companies by market value, adding that corporate governance reforms and pro-market initiatives under President Lee Jae Myung have provided additional support.
Together, the two tech giants now account for more than 40 percent of KOSPI’s total market capitalization. The index comprises more than 800 listed companies.
As the index edges closer to 7,000, bullish sentiment is building for the second half, with some forecasts pointing to a rise toward 8,000.
“The benchmark could extend its record-setting run and move to higher levels on valuation normalization alone,” said Lee Kyung-min, an analyst at Daishin Securities. “A forward price-to-earnings ratio of 8 times would put KOSPI near 7,100, while 9 times would imply around 7,900.”
Secondary bourse Kosdaq, which opened higher, quickly reversed course and ended the session down 10.60 points, or 0.86 percent, at 1,215.58.
In the Seoul foreign exchange market, the Korean won also opened weaker against the U.S. dollar, worsening by 1.6 won to 1,474.1 won, and later closed onshore trading 1.1 won stronger at 1,473.6 won.
Oil prices, meanwhile, climbed more than 2 percent on concerns over prolonged supply constraints following the collapse of a second round of talks between the United States and Iran.
For June delivery, Brent crude, the global benchmark, rose $2.90, or 2.75 percent, to $108.23 a barrel, while U.S. benchmark West Texas Intermediate gained $1.97, or 2.09 percent, to $96.37 per barrel.