Samsung and SK Hynix Fuel Kospi’s Historic Rally Above 5,000
South Korea's Kospi index breached the 5,000-point threshold for the first time, propelled by a 20% January surge in chip stocks. Samsung Electronics and SK Hynix—now comprising over a third of the benchmark—have tripled and quadrupled respectively amid the AI semiconductor boom.
President Lee Jae Myung's corporate governance reforms appear to be bearing fruit. July's Commercial Act amendment legally compels directors to prioritize all shareholders, challenging the chaebol dynasties long accused of suppressing valuations through insider control.
The so-called 'Korea discount'—where global investors shunned local equities due to governance concerns—may finally be narrowing. Market momentum aligns with Lee's campaign pledge to elevate the Kospi, though sustainability hinges on whether foreign capital follows domestic enthusiasm.
