The KOSPI has entered the 6000 era for the first time in history. Riding the artificial intelligence (AI) wave, the memory semiconductor boom and the government's proactive capital market revitalization measures helped the index write new stock market history just one month after surpassing 5000. The KOSPI broke through 6000 shortly after the market opened on the 25th, rose as high as 6144.71, and closed at 6083.86.
The recent unstoppable momentum in the stock market is the combined result of strong performances by semiconductor companies, domestic and foreign investors' revaluation of the Korean market, and the government's efforts to improve capital market structure. Samsung Electronics and SK Hynix, which hold dominance in the high bandwidth memory (HBM) market, led the index rise, while Hyundai Motor Group, which unveiled its humanoid robot 'Atlas,' joined in to accelerate the arrival of the KOSPI 6000 era. Global investment banks' revaluation of the Korean market also contributed, with JP Morgan and Nomura Financial Investment raising their KOSPI targets to 7500-8000. Government measures including the commercial law amendment containing shareholder rights enhancements such as separate taxation on dividend income, and the 'Return Investment Account (RIA)' targeting the return of Korean investors from overseas markets, also served as kindling for the stock market.
However, given that the ultra-short-term surge in the market also relies on liquidity and investor sentiment, there are areas requiring caution. According to the Korea Exchange, the balance of margin trading loans—so-called 'leveraged investment' funds borrowed for investing—recently hit an all-time high of 31.7 trillion won. It was around 18 trillion won at the beginning of last year but surged nearly 80% within a year. The Financial Times warned that 'FOMO' (fear of missing out) psychology fearing being left out of a bull market is spreading among Korean investors, causing them to rush into the stock market. 'K-shaped polarization,' where only some blue-chip stocks soar, is also concerning. Half of this year's KOSPI market capitalization gains are accounted for by just three stocks: Samsung Electronics, SK Hynix, and Hyundai Motor.
While it is welcome that the Korean stock market is being properly valued, we must carefully examine the other side of the rise. If memory semiconductor prices undergo correction due to changes in the AI cycle, the entire Korean stock market could be exposed to volatility. A structure where stock prices rise without being supported by balanced corporate performances and economic growth rates is not sustainable. If authorities become complacent with market stimulus and neglect leveraged investment management, investor losses could mount and the market could fall into chaos if the index plunges due to profit-taking. Now is the time to lead a stable virtuous cycle of stock market funds through preemptive leveraged investment management and improve market fundamentals by clearing out troubled listed companies.