South Korea's KOSPI stock market capitalization surpassed 7,000 trillion won [1] for the first time on June 1, 2024.
This milestone reflects a significant surge in the valuation of South Korean equities, driven largely by the performance of the nation's largest technology firms. The growth signals strong domestic confidence in the market despite shifting trends among international investors.
Samsung Electronics Co. played a central role in this expansion, with its own market capitalization exceeding 2,000 trillion won [1]. This growth coincided with the KOSPI index closing above 8,700 points [2]. The index had previously crossed the 8,000-point level just four trading days earlier [2].
Market analysts attributed the rise to a specific shift in trading behavior. Domestic institutional and individual investors acted as net buyers, which pushed the index higher [2]. In contrast, foreign investors acted as net sellers during the same period [2].
Kim Tae-bong, an economics professor at Ajou University, said domestic buying pressure was the primary driver of the index's ascent. "Looking at yesterday alone, there was an aspect where domestic institutions and individuals did net buying and pulled up the index, while foreigners did net selling," Kim said [2].
As the KOSPI continues its upward trajectory, some observers are now looking toward the 9,000-point mark. YTN News anchor Um Ji-min said the KOSPI has broken through the 8,700 line based on the closing price and is now facing the "9,000-pi" [2].
“KOSPI market capitalization surpassed 7,000 trillion won”
The divergence between domestic buying and foreign selling suggests that South Korean retail and institutional investors are currently more bullish on local tech giants than international funds. This internal support provided a cushion that allowed the KOSPI to reach record valuations despite the exit of foreign capital.
