KOSPI Breaks through 7,000 Milestone, Becomes Fastest-Growing Stock Market in G20

The KOSPI closed the market on May 6, surpassing 7,000 points for the first time in history.

With an annual growth rate of 75%, it recorded the overwhelming growth leader among the G20 countries.

According to the Korea Exchange, the KOSPI closed at 7,384.56 points on the day.

With the closing bell, it surpassed 7,000 points approximately two months after breaking through 6,000 points on Feb. 25.

The Korea Exchange (KRX)’s market cap also reached an all-time high of 6,058 trillion won, increasing by more than 1,000 trillion won since crossing the 6,000-point mark.

The KOSPI’s growth rate this year was a whopping 75.2%, ranking first among G20 countries by an overwhelming margin. Turkey ranked second (29%), followed by Japan (18.2%), Brazil (15.9%), and Italy (8%).

The KRX cited favorable semiconductor market conditions as the main driver for the rise in the KOSPI. In April, Korea’s semiconductor exports recorded $31.9 billion, a 173% increase compared to the same month of the previous year, marking a record high following $32.8 billion in March.

In addition, as performances improved in the upstream and downstream industries of the semiconductor industry such as IT, power equipment, construction infrastructure, and materials, parts, and equipment, rotational trading between sectors is spreading.

Foreign investors, who had net-sold 21.1 trillion won and 35.9 trillion won in February and March, respectively, switched to net buying 1.1 trillion won in April, centered on the electrical and electronics sector and have net bought 6.1 trillion won this month.

In addition, major sectors such as defense, shipbuilding, nuclear power, and construction also drove the rise in the index as geopolitical crises stemming from the Middle East war, demand for artificial intelligence (AI), and strengthened energy security converged.

The growth rates by major sector were electrical and electronics (124.8%), construction (129.2%), machinery and equipment (78.5%), and transportation equipment and parts (39.6%).

The establishment of a foundation for improving corporate governance through amendments to the Commercial Act and an improvement in investor sentiment were also cited as positive factors.

The KRX presented the following as the significance of the KOSPI surpassing 7,000 points — re-establishing the status of the Korean stock market within the global capital market, establishing a structure for co-growth across industries and the full-scale commencement of qualitative structural improvements beyond quantitative growth.

The total market capitalization of the Korean stock market ranked 8th in the world, propelling it to become a major global market.

Jeong Eun-bo, chairman of the KRX, poses for a photo with guests in the 30th Anniversary Ceremony of the Derivatives Market Opening at the Crystal Ballroom on the 3rd floor of the Lotte Hotel Busan. (Photo: KRX)

Ceremony for 30th Anniversary of Derivatives Market Opening

The KRX held a commemorative event to mark the 30th anniversary of the opening of its derivatives market.

On May 6, the Korea Exchange announced that the 30th Anniversary Ceremony of the Derivatives Market Opening was held at the Crystal Ballroom of the Lotte Hotel Busan.

On hand were approximately 200 guests from government, the National Assembly, Busan City, related organizations, and the financial investment industry.

The Korean derivatives market opened on May 3, 1996.

This event was organized to review the achievements of the derivatives market over the past 30 years, explore future directions for its growth and highlight the roles of the derivatives market in Busan.