Korea Exchange (KRX) held a ceremony on the 25th to celebrate the KOSPI index topping 6,000 points. Chair Jung Eun-bo said it was "not a temporary rise in the index but the accumulated result of changes in the capital market structure and improved industrial competitiveness."
The afternoon event at the exchange's promotion hall in Yeouido, Seoul, was attended by Kang Min-guk of the People Power Party, Chair Lee Eog-weon of the Financial Services Commission (FSC), Governor Lee Chan-jin of the Financial Supervisory Service, and President Hwang Sung-yeob of the Korea Financial Investment Association, along with lawmakers, government officials, heads of related institutions, and industry leaders.
Jung said, "After the KOSPI topped 5,000 points on the 27th of last month on a closing basis, it surpassed 6,000 points in less than a month," adding, "It is a truly astonishing pace that no one expected."
The KOSPI index rose to as high as 6,144.71 points intraday, setting a record high. A month after first breaking through 5,000 points last month, it closed at 6,083.86 points.
According to Korea Exchange (KRX), the KOSPI market capitalization also hit an all-time high of 5,017 trillion won. That is an increase of more than 750 trillion won since surpassing 5,000 points.
The KOSPI's rise ranks a dominant No. 1 among the G20 countries. So far this year, the KOSPI is up 44.4%.
The exchange analyzed that the KOSPI's gains were driven by the spread of sector rotation. An exchange official said, "While the electric and electronics sector led the market higher on the back of expanding demand for artificial intelligence (AI) memory chips and strong earnings, defense-related sectors were strong amid geopolitical crises in regions such as the Middle East, and as orders for large overseas projects and exports of power generation equipment became visible, shipbuilding, nuclear power, and construction sectors showed an uptrend."
It also assessed that the finance, securities, and insurance sectors supported the market's rise through improved earnings driven by expectations for dividends, increased transaction value, and larger deposits.
In addition, it viewed the effects of the government's capital market policies as continuing. As the government's efforts to advance the capital market—such as enhancing shareholder value and eradicating unfair transactions—continue, market confidence is recovering and the trend of revaluing corporate value is gaining momentum.
There is also growing optimism about shareholder-friendly market policies, including the first and second amendments to the Commercial Act and the separation of taxation on dividend income, as well as rising expectations related to the third amendment to the Commercial Act, including the retirement of treasury shares.
The exchange said the KOSPI's break above 6,000 points "has elevated the status of the Korean stock market in global capital markets." It explained that breaking 6,000 points just one month after entering the 5,000-point range is the fastest pace on record.
The exchange explained, "The fact that the uptrend has continued after breaking 5,000 points and that gains have outpaced those of major markets suggests that a reassessment of the Korean market's stability is taking hold and that it is entering a medium- to long-term upward phase," adding, "Also, the narrowing of return differentials among sectors compared with last year suggests that the market base is broadening and shifting to a sustainable growth structure."
It added that if broad-based earnings improvement across sectors and the effects of policies to invigorate the capital market continue, the upward momentum could be sustained.
However, it cautioned that profit-taking after a short-term surge, uncertainty over U.S. tariff policy, and heightened geopolitical tensions such as U.S.-Iran conflicts are risk factors.