South Korea's Kospi index surpassed the 5,000 mark for the first time on January 22, defying global market turmoil caused by US President Donald Trump's ambition to take over Greenland.
Surge of blue-chip companies
South Korea's benchmark Kospi index crossed the 5,000 mark for the first time on January 22, a historic milestone that sparked excitement across the country. According to local reports, the Kospi index hit an intraday high of 5,019.54 before finally closing at 4,952.53. Compared to a year ago, when it finished at 2,547, the index is up nearly 94 percent.
The rally comes even as global markets have been reeling in recent weeks due to geopolitical tensions over President Donald Trump's ambitions to take over Greenland. While US and European stocks endured sharp declines on tariff and instability concerns, the Kospi continued its upward trend, supported by strong performance in South Korea's technology and auto sectors. Analysts said this resilience, despite external shocks, underpins investors' confidence in domestic blue-chip companies.
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Hyundai Motor, Samsung Electronics and SK Hynix, long considered the market's blue chips, led the rise. Hyundai Motor's price rose from 208,500 won a year ago to 574,000 won. Samsung Electronics rose from 54,100 won to more than 150,000 won, and SK Hynix almost quadrupled from 199,700 won to 768,000 won.
Reacting to the news, Mr Lee, a self-employed businessman in his 50s, was torn between caution and fear of missing out as the pace of profits increased, the report said. “Blue-chip stocks usually don't move that fast, so I told myself this market wouldn't last long. Before I knew it, it kept going up,” he said.
Last year, South Korean President Lee Jae-myung launched a campaign calling for the arrival of the “Cospi 5,000 era,'' and even live-streamed himself investing 40 million won in two exchange-traded funds. According to Coscom, the Codex 200 ETF he bought rose 115.8%, while the Codex Kosdaq 150 rose 37.9%.
FOMO for individual investors
Meanwhile, the report said that for young Korean investors, the rise was not only financial but also social. Jeon Ji-won, a 25-year-old student, said she felt pressured to invest after seeing her peers boasting of big profits online. “I started investing because I didn't want to feel excluded, not just financially but socially,” she was quoted as saying.
Her selections of YG Entertainment, Kakao and APR did not match the gathering's strongest performers in the technology sector. “Samsung Electronics and SK Hynix continue to make headlines by hitting record highs. It feels like their prices have already gone up too much, but people around me say they are the safest bet,” she said.
Some investors said the soaring prices were creating confusion rather than confidence. Park Jeong-ho, 37, an office worker, said, “As prices continue to rise, I'm worried about when to sell, which items to sell, which items to buy, and whether to imitate other companies.''
Still, some remain skeptical. Huang, a 33-year-old US banker, said much of the enthusiasm was hype generated by colleagues and social media. “Many people don't invest after studying stocks as a long-term commitment. Instead, they jump in after hearing about it from a friend or seeing a YouTube story about someone else making a lot of money,” he says.
Veteran investors like Choi Won-ho, a 40-year-old accountant, say they are unfazed. “I've been trading stocks for almost 20 years, so I don't have any concerns,” he says. “I place emphasis on market themes and whether foreign or institutional investors are participating in the market.I trade based on that, so I don't have a strong fear of missing out.”
Meanwhile, some analysts believe that the Kospi's upward trend despite weak Western markets suggests that regional investors may continue to view South Korea as a relatively safe haven, especially in sectors related to innovation and exports.
Frequently asked questions ❓
- Why is Kospi's 5,000 milestone important? This is the first time that South Korea's benchmark index has exceeded 5,000, almost doubling in one year.
- How have global tensions affected the gathering? The Kospi continued its upward trend even as President Trump's ambitions to take over Greenland disrupted US and European markets.
- Which companies are behind this surge? Blue-chip companies Hyundai Motors, Samsung Electronics, and SK Hynix pushed the index to record highs.
- What do analysts expect next? South Korea may be seen as a safe haven, with innovation and exports continuing to boost investor confidence.
