In a moment that has electrified South Korea’s financial world, the KOSPI index surged past the 6,000-point mark for the first time on February 25, 2026, marking a historic milestone and igniting fresh optimism across the nation’s equity markets. The index opened at 6,022.70, up 53.06 points (0.89%) from the previous day, and quickly climbed to 6,035.01 within minutes of trading, according to data from the Korea Exchange reported by News1 and Joongdo Ilbo. The feat comes just over a month after the KOSPI crossed the 5,000-point threshold on January 22, 2026, at 5,019.54—an astonishing ascent of more than 1,000 points in such a short span.
This landmark rally has not gone unnoticed by the global investment community. In 2025, the KOSPI soared by about 76%, clinching the top spot for annual growth among G20 and OECD nations, as highlighted by Joongdo Ilbo. The momentum has carried into 2026, with the index already up around 40% year-to-date. The KOSDAQ, South Korea’s tech-heavy junior market, has also delivered a stellar performance—rising over 25% and ranking second globally for returns.
What’s fueling this unprecedented bull run? According to Chosun Biz, the answer lies in a potent mix of factors: the explosive growth of the global artificial intelligence (AI) sector, surging profits in the country’s core semiconductor industry, and a suite of government policies designed to revitalize the domestic stock market. These policies include measures to prevent dual listings and encourage dividend payouts, which analysts say are helping to address the chronic undervaluation of Korean equities, long known as the ‘Korea discount’.
Research heads from 11 of Korea’s major securities firms, surveyed by Chosun Biz, overwhelmingly believe that the rally is not a fleeting, overheated spike but the beginning of a sustained uptrend. Kim Dong-won, head of research at KB Securities, asserted, “Considering the advancement of our country’s key industries and the upward revision of profit estimates, there is still room for the index to rise further.” KB Securities had already projected at the end of 2025 that the KOSPI could climb to 7,500 points. Similarly, Kiwoom Securities and Korea Investment & Securities have set their sights on 7,300 and 7,250, respectively, as potential peaks for 2026.
Supporting this bullish outlook is a dramatic improvement in corporate earnings. Yoon Seok-mo, research head at Samsung Securities, noted, “The KOSPI 200’s operating profit estimate for 2026 has been raised by 37% from the end of last year to 562 trillion KRW. The profit momentum driven by semiconductors is at a level rarely seen in other stock markets.” Park Yeon-joo at Mirae Asset Securities added that “expectations for improved corporate performance are acting positively, and the government’s policy stance is drawing more money into the stock market.”
The numbers on the ground are equally striking. Investor enthusiasm is at a fever pitch: as of February 2, investor deposits in brokerage accounts hit a record 111.3 trillion KRW, and even after some withdrawals, stood at 108.29 trillion KRW by February 23, according to Joongdo Ilbo. Margin loan balances, reflecting leveraged trading, exceeded 30 trillion KRW for the first time on January 29 and reached 31.7 trillion KRW by February 23. The number of active trading accounts surpassed 100 million on January 28, meaning that, on average, every South Korean holds more than two trading accounts—a testament to just how widespread stock market participation has become.
On the day of the breakthrough, the rally was led by semiconductor giants and blue-chip stocks. Samsung Electronics rose by 1.00% to 202,000 KRW, while SK Hynix climbed 0.30% to 1,008,000 KRW—both notching new intraday records, as Choice Economy and KNN News reported. Hyundai Motor and Kia posted spectacular gains of 4.77% and 10.92%, respectively, and Doosan Enerbility also edged up. Not all sectors shared in the euphoria, however: LG Energy Solution fell 0.73%, Samsung Biologics slipped 0.06%, and Hanwha Aerospace dropped 2.18%.
Foreign and institutional investors, meanwhile, were net sellers, offloading 528.7 billion KRW and 314.3 billion KRW worth of shares, respectively, according to KNN News. Individuals stepped in with a net purchase of 829.1 billion KRW, underscoring the pivotal role of retail investors in sustaining the rally—even as some global players exhibited caution.
External factors have also played a role. The previous night, all three major U.S. indices closed higher: the Dow Jones up 0.76%, S&P 500 up 0.77%, and Nasdaq up 1.04%, as reported by CNBC and KNN News. The Philadelphia Semiconductor Index rose 1.45%, and major U.S. tech stocks—Nvidia, Apple, Microsoft, and Amazon—also advanced. The U.S. dollar strengthened, with the dollar index rising 0.14% to 97.84, and the benchmark 10-year Treasury yield ticked up to 4.037%. In Seoul, the won-dollar exchange rate opened at 1,441.6 KRW per dollar, down 0.9 KRW from the previous day.
Despite the exuberance, some analysts are urging caution. A few voices warn that the rapid ascent could trigger sharp corrections, especially if the AI investment boom loses steam or if the U.S. Federal Reserve tightens monetary policy further. Kim Hak-kyun, research head at Shin Young Securities, commented, “I don’t see the current price surge as a bubble. Expectations for improved corporate governance and semiconductor earnings have been the biggest drivers since last year.” Hwang Seung-taek of Hana Securities observed, “Right now, the market is rising because of increasing corporate profits, not because valuations have improved. If policies to boost valuations and more funds flow into the market, we can expect further upgrades.”
Others, like Yoon Chang-yong of Shinhan Investment & Securities, point to possible volatility ahead if U.S. tech giants delay capital expenditures or if the semiconductor supply chain expands too quickly. “Such an environment could provide grounds for a market correction,” he noted.
Still, the prevailing sentiment remains upbeat. For now, the KOSPI’s breach of the 6,000-point barrier is being celebrated as the dawn of a new era for Korean equities—a feat achieved through the combined might of technological innovation, policy reform, and a groundswell of retail investor enthusiasm. Whether this momentum can be sustained will depend on how these forces evolve in the months ahead, but for now, South Korea’s stock market is basking in the glow of a truly historic rally.