Photo: KOSPI index hits the intermarket high. Credit: JoongAng Ilbo.
Yes, we are talking about the stock market again, because the current run is entering unprecedented territory. Although the global market has been recently pulling back, South Korea’s KOSPI index cracked 5,800 with an inter-market high of 5,808.53 on February 20, once again setting a new record.
The KOSPI index gained 34.8% year-to-date, becoming the world’s most profitable stock index by an overwhelming margin. In the United States, the Dow Jones index rose by 1.5% over the same period; Japan's Nikkei 225 gained 9.6% and China's Shanghai Composite index rose by 1.5%.
Leading the way are Samsung Electronics 삼성전자 and SK Hynix SK 하이닉스, the top manufacturers of memory chips used in AI data centers. BlackRock, the world's largest asset manager, disclosed on February 20 that it has built a position of more than 5% in SK Hynix, indicating that global capital is entering the South Korean stock market in large quantities.
But it is not just the technology sector that is enjoying the capital market boom. Large insurance companies have been unexpected beneficiaries too, with share prices for Mirae Asset Life 미래에셋생명, Lotte Insurance 롯데손해보험, Hanwha Life 한화생명, and Heungkuk Fire & Marine Insurance 흥국화재 all jumping by nearly 30% on February 20 due to expectations that they stand to benefit from the next round of capital market reforms, which that will require greater dividend payments from companies. (See previous coverage, “New Laws Strengthen Shareholder Rights.”)
