Korea Exchange (KRX) CEO Jeong Eun-bo, front row center, holds a ceremony with employees commemorating KOSPI breaking the 8,000-point mark at the KRX building in Seoul, Tuesday. The benchmark index closed at 8,047.51, up 199.80 points, or 2.55 percent, from the previous session. Yonhap

This is the first in a series of articles examining economic, political, diplomatic and social changes that have occurred during the Lee Jae Myung administration since the president’s inauguration on June 4, 2025. — ED./div>

Korean stocks have extended an unprecedented rally despite uncertainties stemming from the Middle East conflict, with the benchmark KOSPI soaring from the 2,000-point range to above 8,000 within a year of President Lee Jae Myung taking office.

KOSPI’s gains this year, the strongest among major G20 economies, have been driven largely by a global semiconductor supercycle fueled by rising artificial intelligence (AI) demand, which boosted earnings at Samsung Electronics and SK hynix, alongside the government’s market value-up and stock market revitalization policies.

KOSPI closed at 2,770.84 on June 4, 2025, the day Lee took office. Less than a year later, the index finished at 8,047.51 on Tuesday,surpassing the 8,000 markon a closing basis for the first time after briefly topping the level intraday on May 15. The rally continued Wednesday, with KOSPI reaching 8,228.70, up 181.19 points, or 2.25 percent, and setting another closing high just a day after the previous milestone.

Data released by business tracker CEO Score on May 13 showed that the combined market capitalization of Korean listed firms surged to 7,088 trillion won ($4.68 trillion) as of May 11, marking a 172.9 percent jump from 2,597 trillion won recorded on June 2, 2025, just before Lee’s inauguration. This suggests the market added nearly 4,500 trillion won in value within just 11 months.

Samsung Electronics’ market capitalization climbed 396.4 percent over the period to 1,669 trillion won from 336 trillion won, while SK hynix posted a 787 percent surge to 1,339 trillion won from 151 trillion won. Together, the two companies accounted for 42.4 percent of total market capitalization, underscoring their growing dominance in the Korean stock market.

The Ministry of Finance and Economy also highlighted KOSPI’s sharp rise as one of the hallmark economic achievements of Lee’s first year in office.

“KOSPI, long criticized for its chronic undervaluation, has posted the strongest gains among major global bourses since the inauguration of this government,” First Vice Finance Minister Lee Hyoung-il said at a Cabinet meeting on May 20, adding that the domestic stock market had overcome the long-standing “Korea discount.”

The market’s remarkable rally has also been attributed to the government’s capital market reform drive, including corporate governance reforms and market value-up policies. The government rolled out a range of shareholder-friendly measures, including three rounds of amendments to the Commercial Act introduced between last July and this March.

Source: Korea Times News