After the KOSPI index topped 5,000 points for the first time ever early this year, it went on to break through 6,000 and 7,000 points in succession and then surpassed 8,000. It came just 13 trading days after reaching 7,000 points.
As the index surged, the pace of breaking through each 1,000-point band also accelerated. After the KOSPI index topped 3,000 points in 2021, it took four years to reach 4,000, but only three months to hit 5,000.
The rally was even more relentless after that. It took less than a month for the index to climb from 5,000 to 6,000 points. With the outbreak of war between the United States and Iran, it took more than two months to reach 7,000, but in just 13 trading days the index again surpassed 8,000.
As the index jumped, the market capitalization of the main board hit a record 6,581 trillion won.
The total market capitalization of Korea's stock market ranked seventh in the world after the United States, China, Japan, Hong Kong, Taiwan and India. So far this year (January–May), the KOSPI index is up 91%, an overwhelming No. 1 among the Group of 20 countries. Japan's market ranks second with a 29% gain, followed by Türkiye at 23% and Italy at 12%.
The Korea Exchange (KRX) said, "On the back of strong earnings and increased investment in global technology stocks, earnings at domestic semiconductor corporations are improving, and as investment funds flow into the capital market, the rally is being supported."
Customer deposits entrusted for stock investing rose from 52 trillion won at the end of 2024 to 88 trillion won at the end of last year and topped 100 trillion won early this year. As of the 20th of this month, they were close to 126 trillion won, an all-time high.
Jeong Eun-bo, chair of the Korea Exchange (KRX), attended an event marking the KOSPI index's breach of 8,000 points and said, "KOSPI 8,000 signifies the trust and confidence that domestic and overseas investors have in our capital market," adding, "Major global investors have begun to view our capital market as a 'premium market.'"
Jeong also said, "The Korea Exchange (KRX) will advance the market infrastructure," adding, "We will steadily push ahead with current tasks such as the swift delisting of insolvent corporations, support for listings of promising corporations, extended trading hours and a shorter settlement cycle."
The exchange explained, "Based on expanding demand for artificial intelligence (AI), improving earnings at semiconductor corporations and the continued effects of policies to advance the capital market will provide additional momentum for the index to rise," while noting, "Demand for profit-taking after a short-term surge, a spike in major countries' Government Bonds yields and uncertainty over monetary policy are risk factors."