President Yoon Suk-yeol shared a post on X stating that the KOSPI index would be significantly lower without the semiconductor sector.
The post highlights the extreme concentration of South Korea's primary stock market index. Because the semiconductor industry acts as the primary engine for national equity growth, any volatility in chip demand could disproportionately impact the overall market stability.
Referring to research conducted by a securities-firm analyst, the president said that the KOSPI would be only around 4,100 to 4,200 [1] if semiconductor companies were excluded from the calculation. The analyst said that without the semiconductor sector, the actual KOSPI index is merely at the 4,100 to 4,200 level [1].
By sharing this specific data on social media, the president emphasized the gap between the current index level and the performance of other industrial sectors. The move suggests a recognition of the vulnerability inherent in a market so heavily weighted toward a single technology vertical.
This public acknowledgment comes as the administration continues to navigate the global competition for semiconductor dominance. The reliance on this sector ensures that the KOSPI remains sensitive to international trade policies, and the performance of global tech giants.
“the KOSPI index would be only around 4,100 to 4,200 if semiconductor companies were excluded”
This communication signals a government awareness of 'concentration risk' within the South Korean economy. By publicly citing the disparity between the total KOSPI and a non-semiconductor index, the administration is implicitly acknowledging that the nation's perceived financial health is heavily tied to the chip cycle, which may necessitate further diversification of the industrial base to ensure long-term economic resilience.
