The KOSPI has surpassed the 9,000 mark, a threshold the Korean stock market had never reached before. On June 18, the index climbed as high as 9,008.84 during trading, crossing 9,000 for the first time in history.
The index closed at 9,063.84, up 2.25 percent from the previous trading day. Intraday, it surged as high as 9,106.07. Just 22 trading days after first breaking above 8,000 on May 15, it punched through another 1,000-point milestone.
The pace of the rally is accelerating. After surpassing 4,000 in October last year, the KOSPI moved through 5,000, 6,000, 7,000 and 8,000 in rapid succession this year. The interval needed to add another 1,000 points has been shortening steadily.
Its size has also reached an all-time high. The KOSPI’s market capitalization stood at 7,413 trillion won, and the total market cap of the domestic stock market rose to seventh place globally. Its gains have been the steepest in the world. So far this year, the KOSPI has risen 115.1 percent, ranking first among the G20 nations.
Semiconductor giants drove the index higher.
SK Hynix jumped more than 6 percent, setting a new all-time closing high. Its share price, which had first moved above 2.5 million won the previous day, approached 2.7 million won on this day. Samsung Electronics also rose more than 4 percent, ending trading in the 360,000-won range.
Foreign investors were at the center of the buying. They net bought 1.2777 trillion won worth of Korean stocks on the KOSPI. By contrast, individual investors sold 375.1 billion won, while institutions sold 778.2 billion won. The index was lifted by foreigners returning to net buying after 12 days, having stuck to selling for 24 consecutive sessions.
Underlying the move is the expansion of artificial intelligence investment. As demand for memory semiconductors used in data centers increases, expectations for earnings among export-oriented companies have improved. The Korea Exchange said buying interest also spread to robot and aerospace stocks. Still, the concentration of capital in a single industry—semiconductors—is both the force behind the rally and its weakness.
The gain was unusual in that it overcame headwinds head-on.
On June 17 local time, the U.S. Federal Reserve left its policy rate unchanged and even hinted at the possibility of additional rate hikes this year. Rate increases normally weigh on equities. The won-dollar exchange rate also opened at 1,525.0 won, up 11.6 won, adding to the pressure.
The market, however, was looking elsewhere. With the United States and Iran reaching a ceasefire agreement, the risk of war eased significantly. Although U.S. President Donald Trump said the agreement could not be viewed as a final settlement and raised the possibility of renewed airstrikes, investors leaned toward the view that the conflict had ended.
As the urge to avoid risk eased, buying strengthened even further. Policy changes also provided support at the bottom. As the government’s push for capital market advancement began to take effect, analysts say the long-standing Korea discount has started to unwind. Korea Exchange Chairman Jeong Eun-bo said a “new journey toward 10,000 points” lies ahead.
KOSPI and KOSDAQ moved in opposite directions on the same day.
While the KOSPI set a new all-time high, the KOSDAQ fell sharply by more than 3 percent and slipped below the 1,000 level. It was a day when one market hit historic heights and the other weakened.
The divergence came down to concentration. As money flowed into a handful of large-cap stocks, including semiconductors, the KOSDAQ, which is centered on smaller companies, was left behind. The fact that upward momentum is concentrated in a limited number of stocks is also a sign that volatility could increase.
Views on the outlook remain divided. Global investment banks are one after another raising their targets and citing the possibility of the KOSPI reaching 10,000. On the other hand, there are also many voices warning of overheating, given that the index has nearly doubled in a short period.
The number 9,000 is closer to a waypoint than a destination. Because the rally has been so steep, the eventual correction could also be deep. How broadly the rise, now relying on a single semiconductor pillar, can spread across a wider base will determine the next milestone.