The market capitalization of the domestic stock market, which is on a rising rally, has surpassed 6,000 trillion won for the first time.
According to the Korea Exchange (KRX) on the 27th, as of the day, the total market capitalization of the domestic stock market (KOSPI, KOSDAQ, and KONEX) was 6,032 trillion won. By market, the KOSPI market cap was 5,354 trillion won, and the KOSDAQ and KONEX markets were 674 trillion won and 3 trillion won, respectively.
It is the first time ever that the domestic stock market's market cap has exceeded 6,000 trillion won. Since last year, as the local market has surged, market cap has also jumped. With the "semiconductor super-boom" driven by growth in the artificial intelligence (AI) industry, performance improvements centered on these corporations, and the new administration's market-boosting policies aligning, the KOSPI index has surged this year, breaking all-time records. The KOSDAQ index is also setting its highest levels since the early-2000s "dot-com bubble."
The market cap of the local market has surpassed twice the level of nominal gross domestic product (GDP), the sum of value added that Korea creates in a year. Korea's nominal GDP is around 2,500 trillion won, putting the domestic market's cap at about two to three times GDP.
Warren Buffett created the "Buffett Indicator" by dividing market cap by GDP, viewing 100% or below as undervalued and above 200% as overheated. By this measure, the current market appears "overheated," but in the securities industry, there is an outlook that stocks could rise further on the back of improved earnings at major listed companies.
As Korea's market cap has surged, it has established itself as a major market that ranks within the global top 10. Since the start of this year, the domestic market cap has overtaken Switzerland, Germany, Taiwan, and France in succession to rank ninth in the world, with a possibility of surpassing the Saudi Arabia and Canada markets as well.
The U.S. market's cap is around 800 quadrillion won, more than 10 times Korea's, and the market caps of China, Japan, India, and the United Kingdom are higher than Korea's.