This year the KOSPI index broke through the 4,200 level for the first time ever, as the government's capital market revitalization policies aligned with listed companies' efforts to raise corporate value. Despite ongoing political and trade risks, investor sentiment recovered quickly and the index set a record high for the year.
According to the "2025 securities market settlement of account" released by the Korea Exchange (KRX) on the 30th, this year's KOSPI index ended the last transaction at 4,214.17 points, up 75.6% from the end of last year.
The KOSPI index fell to 2,236 points (–24.9%) in 2022, rose to 2,655 points (+18.7%) in 2023, and declined to 2,399 points (–9.6%) in 2024 before staging a sharp rebound this year.
The size of the gain stood out even compared with major markets. The KOSPI's rise of 75.6% this year ranked No. 1 among Group of 20 (G20) and Organisation for Economic Co-operation and Development (OECD) countries.
At the start of the year, the KOSPI index slid to 2,293 points on Apr. 9, marking the yearly low due to domestic and external variables such as political uncertainty and concerns about the United States imposing a reciprocal tariff.
However, after the launch of the new administration, capital market revitalization policies such as enhancing shareholder value and eradicating unfair transactions were promoted, and expectations for an improvement in the semiconductor cycle added momentum, quickly restoring investor sentiment. On Oct. 27, it topped the 4,000 level for the first time ever and has maintained an upward trend since.
By sector, all sector indexes rose from the end of the previous year, with machinery and equipment (+133.7%), electrical and electronics (+127.9%), electricity and gas (+103.5%), and securities (+99.9%) showing distinct strength. Against a backdrop of global rate cuts, expectations for improved earnings in shipbuilding, defense, nuclear power, and semiconductor sectors and for capital market revitalization policies drove stock gains.
Market capitalization also expanded sharply. At the end of the year, the KOSPI market's capitalization was 3,478 trillion won, up 1,515 trillion won (77.1%) from the end of the previous year. Buoyed by the KOSPI's rise, market capitalization surpassed 3,000 trillion won for the first time ever.
Transaction size also increased. The average daily trading volume rose 6.4% year over year to 518 million shares, while the average daily transaction value climbed 57.1% to 16.9 trillion won. With trading expanding in high-priced, large-cap stocks and share prices rising, the increase in transaction value outpaced volume, the analysis said.
By investor type, foreigners and individuals were net sellers of 9 trillion won and 19.7 trillion won, respectively, while institutional investors were net buyers of 18.2 trillion won and other corporations bought a net 10.5 trillion won. Although foreigners were net sellers on an annual basis, they posted net purchases totaling 19.5 trillion won from May to October (excluding August), helping drive the index higher.
Institutional investors expanded their buying mainly in the financial investment institutional sector, while other corporations' net purchases were led by share buybacks.
The KOSDAQ index also showed a clear recovery toward year-end. After a weak start to the year, expectations for government policies to revitalize the KOSDAQ market and an AI-driven improvement in the semiconductor cycle combined to turn the trend higher.
This year the KOSDAQ index finished trading at 925.47 points, up 36.5% from the end of last year. The KOSDAQ index fell to 679 points (–34.3%) in 2022, rose to 867 points (+27.6%) in 2023, and declined to 678 points (–21.7%) in 2024 before rebounding this year.
Semiconductor, robotics, and biotech-related sectors led the index higher. The machinery and equipment sector rose 76.6%, the biggest gain, followed by general services (+68.8%), transport equipment and parts (+53.3%), pharmaceuticals (+40.1%), and non-metallics (+39.7%).
Market capitalization also increased significantly. At the end of the year, the KOSDAQ market's capitalization was 506 trillion won, up 166 trillion won (48.7%) from the end of the previous year. The KOSDAQ market also topped 500 trillion won in market capitalization for the first time ever.
Transaction size also swelled. This year, the KOSDAQ market's average daily trading volume rose 1% year over year to 980 million shares. The average daily transaction value increased 10.7% to 9.3 trillion won.
The initial public offering (IPO) market also showed vitality. The number of new listings on the KOSDAQ market this year was 109, with offering proceeds of 2.5 trillion won. As listings centered on strong small and mid-sized corporations continued, the number of newly listed companies decreased, but offering proceeds increased by 100 billion won from the previous year.