Kospi hits record 6,000 led by investors

The Kospi index surged past 6,000 for the first time on Feb. 25, reaching the milestone just 19 trading days after crossing 5,000 on Jan. 27.

So far this year, the Kospi has climbed 44.3 percent, lifting South Korea’s stock market capitalization above France and placing it ninth globally, just behind Germany. Some analysts predict the index could reach 8,000, but caution that after such an extraordinary rally, a market correction is possible, and investors should avoid aggressive all-in strategies.

On Feb. 25, the Kospi closed at 6,083.86, up 114.22 points, or 1.91 percent, from the previous session. The milestone marks the start of the so-called “Kospi 6,000 era” less than a month after the index first surpassed 5,000.

The rally was driven by institutional and retail investors. Foreign investors sold a net 1.28 trillion won, while institutions bought 880 billion won and individuals purchased 220 billion won, supporting the index. Gains were concentrated among large-cap stocks. Samsung Electronics and SK hynix, which had crossed 200,000 won and 1 million won respectively the day before, rose about 1 percent each. Shares of Hyundai Motor and Kia jumped 9.16 percent and 12.7 percent, respectively, fueled by expectations over the initial public offering of Boston Dynamics, Hyundai’s robotics subsidiary.

The South Korean market also benefited from optimism about artificial intelligence infrastructure and physical AI investments. Last month, the Kospi surpassed Germany, and this month it overtook France. According to Bloomberg, as of the Feb. 24 close, South Korea’s market capitalization stood at $3.76 trillion, exceeding France’s $3.69 trillion and ranking ninth globally.

Japan and Taiwan also reached record highs following a rebound in U.S. technology stocks. Japan’s Nikkei 225 rose 2.2 percent to 58,583.12, while Taiwan’s TAIEX gained 2.05 percent.

Market analysts expect the Kospi’s strength to continue, led by semiconductor stocks, as memory chip supply bottlenecks persist. Han Ji-young, an analyst at Kiwoom Securities, said South Korean companies’ projected earnings growth outpaces that of the U.S., Japan, and Europe, indicating further gains are possible. Following Nomura Securities’ projection that the index could reach 8,000 in the first half of the year, Kiwoom Securities raised its year-end Kospi forecast to 7,300.

Some experts, however, caution that the rapid surge could trigger a temporary market correction. “While the semiconductor sector is booming, construction and facility investment remain weak, limiting the spread of growth to the domestic economy," said Seok Byung-hoon, an economics professor at Ewha Womans University. "Rising U.S. tariff uncertainty and ongoing geopolitical risks mean overly optimistic forecasts should be viewed with caution.”


홍석호 기자 will@donga.com