South Korea's stock market surpasses Germany and France to rise to the ninth position globally, with Lee Jae-myung leading KOSPI to a new high

Ignoring US stock bubble concerns, South Korea’s KOSPI index reached 6,135 points today, hitting a new high. According to data compiled by Bloomberg on Tuesday, the Korean stock market has benefited from the expansion of the global artificial intelligence industry, with total market capitalization rising to $3.76 trillion. This figure officially surpasses France’s $3.69 trillion, making South Korea the ninth-largest stock market in the world. This shift highlights the increasing importance of the tech industry in global capital markets and Korea’s supply chain advantages in chips and automation.

Tech Supply Chain Advantages Drive Korea’s Capital Momentum

The recent expansion of the Korean stock market is mainly due to the widespread application of global AI technology. As a core supplier of AI infrastructure, Korea has long-standing advantages in advanced memory chips, boosting revenue expectations for flagship companies like Samsung Electronics. Additionally, the demand for robot automation has also elevated the valuations of related companies such as Hyundai Motor. This industry structure, focused on high-tech manufacturing, attracts international capital inflows, driving the KOSPI to achieve approximately 44% growth this year, making it one of the best-performing markets globally. This demonstrates how the key position of the tech supply chain is transforming into tangible capital market momentum.

Lee Jae-myung’s Policy Reforms Promote Corporate Valuation Reassessment

Beyond industry benefits, the Korean government’s push for corporate governance reforms is also a key macro factor boosting market value. The Korean authorities actively support capital market reforms aimed at addressing the long-standing “Korea Discount”—the phenomenon where Korean companies are generally undervalued compared to their international peers—by requiring companies to optimize governance and increase shareholder returns. This investor-friendly policy environment effectively boosts confidence among domestic and foreign investors. The combined effects of policy guidance and industry cycles form the foundation for the steady rise in overall market capitalization.

(From day traders to President Lee Jae-myung leading KOSPI to new highs)

Disparity Between Real Economy and Stock Market Capitalization

South Korea’s market cap surpassing France highlights the divergence between the “real economy size” and “stock market total value.” Data shows France’s GDP is about $3.16 trillion, significantly higher than Korea’s $1.88 trillion. However, the French CAC 40 index has only grown modestly by about 4% this year, mainly due to its industry structure leaning toward traditional consumption and facing regional economic and political headwinds. In contrast, Korea’s high-growth tech industry chain has enabled it to outperform its real economy ranking in the capital market. This reflects the current global trend of capital being highly concentrated in high-tech sectors.

This article, “South Korean Stock Market Surpasses Germany and France to Rise to Ninth Globally, Lee Jae-myung Leads KOSPI to New High,” first appeared on Chain News ABMedia.