The benchmark KOSPI index is displayed on an electronic board at the dealing room of Hana Bank headquarters in Seoul, Thursday. The index closed at another record high of 7,490.05, up 105.49 points, or 1.43 percent, from the previous session. Yonhap
Even as the KOSPI fuels one of the strongest bull runs in the market’s history, experts warned Thursday that the surge in the benchmark index should not be interpreted as a sign that economic conditions are improving evenly across society.
They noted that with gains concentrated in a small group of heavyweight exporters, particularly semiconductor stocks, a considerable number of retail investors are finding it increasingly difficult to benefit from the rally, reinforcing market polarization in what is being described as a “K-shaped” trend.
At the same time, elevated oil prices and broader cost-of-living pressures continue to dampen consumer sentiment, leaving small merchants and self-employed workers under financial strain.
On Wednesday, the KOSPI jumped 6.45 percent from the previous trading day to close at 7,384.56, surpassing the 7,000 threshold for the first time since the index was introduced in 1983. On Thursday, it opened another 114.51 points, or 1.55 percent, higher at 7,499.07 and briefly climbed above the 7,500 mark for the first time intraday before ending the session at 7,490.05, up 105.49 points, or 1.43 percent.
As the index extends its historic rally, gains have become increasingly concentrated in semiconductor heavyweights Samsung Electronics and SK hynix, highlighting growing imbalances within the market.
The KOSPI’s market capitalization climbed to an all-time high of 6,070.7 trillion won ($4.2 trillion) on Wednesday, breaking through the 6,000 trillion-won mark only about two months after surpassing 5,000 trillion won on Feb. 25.
Of the 1,000 trillion won added to the market’s total value during that period, around 390 trillion won came from Samsung Electronics and about 410 trillion won from SK hynix, meaning the two chipmakers accounted for nearly 80 percent of the overall increase.
Data from the Korea Exchange showed that despite the index’s sharp rally on Wednesday, only 200 of the KOSPI’s 948 listed companies, or 21.1 percent, recorded gains, while 679 stocks, representing 71.6 percent of the market, moved lower.
The figures highlight a growing disconnect between the KOSPI’s headline performance and investors’ actual market sentiment, suggesting that the rally is not being driven by broad-based market participation.
Source: Korea Times News
