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An individual snaps a photograph of a banner exterior the Korean Alternate commemorating the KOPSI benchmark index breaking 5,000 for the primary time in historical past on Jan. 22, 2026. (Ryu Woo-jong/Hankyoreh)
For the primary time in its 46-year historical past, South Korea’s benchmark KOSPI index broke 5,000 throughout buying and selling. The Korean economic system, nonetheless, barely eked out a yearly progress price of 1% because it contracted within the fourth quarter of 2025. Korea now faces the troublesome job of overcoming an uneven, Okay-shaped financial restoration.
On Thursday, the KOSPI opened at 4,987.06 on the Korea Alternate, up 1.57% (77.13 factors) from the earlier session. Surging previous the 5,000 mark for the primary time in its historical past early within the session, the index hit an intraday excessive of 5,019.54.
The index fluctuated across the 5,000 mark earlier than profit-taking within the afternoon introduced it again all the way down to 4,952.53, ending the week up 0.87% (42.60 factors) from the earlier session. Whereas falling barely wanting the 5,000 mark, the index closed at a document excessive.
Samsung Electronics, the corporate with the best market cap, briefly hit 157,000 gained throughout buying and selling earlier than closing at 152,300 gained (up 1.87%), pushing its mixed market cap for widespread and most well-liked shares previous 1 quadrillion gained for the primary time in historical past for a single firm. SK Hynix shares additionally rose 2.03%.
The KOSPI, quick for Korea Composite Inventory Value Index, has been on an unmatched roll because the starting of the yr, rising for 14 days since Jan. 2, excluding Jan. 20. Since closing buying and selling for 2025 on Dec. 30 at 4,214.17, the index has surged 17.54% — the best among the many main inventory indexes of 40 main international locations.
The KOSPI has greater than doubled in rather less than a yr. After hitting a document low in April 2025 (2,293.70), it surged to interrupt the 4,000-mark on Oct. 27, solely to interrupt one other ceiling in roughly three months by hitting the 5,000-mark throughout buying and selling.
Throughout this era, the Korean inventory market steadily pushed up the index by persevering with rotational commerce patterns pushed by large-cap shares akin to semiconductors, protection, shipbuilding, nuclear powers, vehicles and robotics. For example, when semiconductor shares plateaued amid weak spot in US tech shares, shopping for curiosity shifted to automotive and robotics shares. In 2025, the KOSPI was ranked first among the many benchmark indices of the Group of 20 and OECD member international locations for its improve of 75.6%. Over the identical interval, Japan’s benchmark index rose 27%, China’s 18%, and the US’ 17%.
Nevertheless, this has led to an intense focus phenomenon, with mid- and small-cap shares being comparatively uncared for.
“Through the sharp surge originally of the yr, the variety of declining shares exceeded the variety of rising shares. This implies the inventory rally was concentrated in only some sectors like semiconductors, shipbuilding, protection and vehicles,” assessed Han Ji-young, a researcher at Kiwoom Securities.
Whereas Korean shares have hit document highs, the Korean economic system contracted within the fourth quarter of 2025, barely reaching an annual progress of 1%, the bottom stage of progress because the COVID-19 pandemic. Knowledge from the Financial institution of Korea reveals that the flash estimate for actual GDP progress within the fourth quarter of 2025 (quarter-on-quarter) was -0.3%.
Quarterly progress contracted within the first quarter of 2025, rebounded within the second quarter (0.7%), rose considerably within the third (1.3%), solely to contract once more within the fourth. The fourth-quarter progress price is the bottom in three years, because the fourth quarter of 2022 (0.4%). The annual progress price, 1.0%, for 2025 was rounded up from the second decimal house (0.97%).
By Kim Hoe-seung, senior workers author
Please direct questions or feedback to [english@hani.co.kr]
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