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Korea's Market Soars: AI Chips Fueling Historic Gains
17 Apr
Summary
- Kospi index achieved a 75% return in 2025, driven by chipmakers.
- Corporate governance reforms are incrementally improving undervalued opportunities.
- South Korea plans 100 gigawatts of renewable energy by 2030.
South Korea's Kospi index achieved an impressive 75% return in 2025, largely propelled by robust demand for its domestic memory chip manufacturers. As of April 2026, the index has surged an additional 40%, recovering from earlier losses incurred during the Iran conflict.
Analysts from Goldman Sachs highlight that structural drivers, including incremental corporate governance reforms, are supporting South Korea's market resurgence. These reforms aim to dismantle the 'Korea discount,' historically associated with family-owned conglomerates, by improving shareholder value through increased buybacks and treasury share cancellations.
Despite progress, challenges persist, with many Kospi constituents trading below book value. However, the energy minister emphasized the Iran conflict as a turning point, accelerating South Korea's shift towards renewable energy. The nation has committed to reaching 100 gigawatts of renewable energy capacity by 2030.
