South Korea’s stock market hit a historic high on Thursday as the Kospi index briefly crossed 5,000 for the first time, driven by a powerful rally in AI-linked tech stocks.
The benchmark climbed to 5,019.54 before easing to a record close near 4,952, capping a stunning 94% surge over the past year and making Kospi the world’s best-performing major index.
The rally was led by chip giants Samsung Electronics and SK Hynix, as soaring demand for memory chips used in AI data centers lifted the entire market. Optimism accelerated after Nvidia CEO Jensen Huang said multi-trillion-dollar investments will be needed to build global AI infrastructure.
“This is only the start,” said Kang DaeKwun of Life Asset Management, predicting Kospi could reach 6,000 soon.
Crossing 5,000 also marks a political victory for President Lee Jae Myung, who pledged to lift the index by fixing weak corporate governance and boosting shareholder returns. Even at record highs, Kospi still trades cheaply, at 1.6 times book value, below regional peers.
Market value is now near $3 trillion, pushing Korea ahead of Germany and closer to Taiwan.
Risks remain, from foreign selling to slowing growth and global trade tensions. Still, with AI demand booming and reforms advancing, investors are increasingly betting this rally still has room to run.
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