South Korea's benchmark KOSPI index breached the 5,000 milestone for the first time since its launch in 1980, reaching the long-awaited threshold just three months after crossing 4,000 on October 27 last year. The rally, initially driven by semiconductor stocks, has spread to other large-cap shares, accelerating the dawn of the "5,000 KOSPI era" and keeping Korea's stock market at the top of global performance rankings this year, following its 75.6% gain in 2024.
According to the Korea Exchange on Wednesday, the KOSPI closed at 4,952.53, up 42.60 points (0.87%) from the previous session. While it failed to close above 5,000, the index touched an intraday record high of 5,019.54.
The KOSPI has surged approximately 17% year-to-date, ranking first among 40 major national indices globally. This far outpaces the S&P 500's 0.44% gain and Japan's Nikkei 225's 6.79% rise over the same period. The tech-heavy KOSDAQ also rose 19.06 points (2.00%) to close at 970.35, fueling expectations it could soon reach the 1,000 mark.
The KOSPI rally that began last year is attributed to a confluence of factors: rotational buying that started with semiconductor stocks amid the artificial intelligence boom and spread to automotive, shipbuilding, defense, nuclear power, and secondary battery sectors; abundant liquidity in capital markets; and easing of U.S. tariff uncertainties.
Samsung Electronics (005930.KS), the world's largest memory chipmaker, was the day's standout performer, closing at a record high of 152,300 won, up 1.87%. The company became the first Korean firm to surpass 1,000 trillion won in market capitalization (combining common and preferred shares) and achieved its first-ever "150,000 won" milestone.
However, the rapid ascent to 5,000 presents risks. Investors should remain cautious that momentum could slow or stocks that rose excessively on expectations alone could retreat. Nevertheless, analysts expect the KOSPI to maintain its upward trajectory in the near term, with the upper band potentially exceeding 5,500.