Home / Business and Economy / Korea Stocks Soar: AI Boom Fuels Record Gains
Korea Stocks Soar: AI Boom Fuels Record Gains
7 Jan
Summary
- South Korean stocks lead global markets in 2025, driven by AI chip earnings.
- Government launches 150 trillion won fund to boost high-tech industries.
- Corporate reforms aim to boost accountability and shareholder value.
South Korean equities are outperforming global markets in 2025, driven by strong tech earnings and attractive valuations. The pivotal role of Korean chipmakers in the AI supply chain is a major catalyst, with earnings for companies like Samsung Electronics and SK Hynix projected to surge significantly. This optimism is further bolstered by a planned 150 trillion won government investment fund aimed at high-tech industries.
Sweeping corporate reforms, including strengthened board accountability and potential cancellation of treasury shares, are also drawing investor attention. These changes echo successful reforms in Japan, leading some to believe South Korea is next in line for a market revitalization, potentially eradicating the "Korea Discount."
Retail investors, after a significant investment in US stocks last year, are showing signs of returning to the domestic market. With the benchmark Kospi trading at a low 10 times forward earnings, coupled with these strong catalysts, analysts anticipate a robust performance for the South Korean stock market throughout 2026.
