Riding the wave! Memory chip feast boosts Korean stocks past 6,000 points, soaring 42% year-to-date to hit new highs

Bloomberg News has learned that just one month after breaking through the once-unimaginable psychological barrier of 5,000 points, the South Korean stock market benchmark index has once again crossed a new milestone, fueled by a surge in global memory demand that has injected strong momentum into the country’s largest chip manufacturer.

On Wednesday, the Korea Composite Stock Price Index (KOSPI) rose steadily, reaching a record high of 6,079 points by the time of writing, up 1.83%. Samsung Electronics’ stock price increased by 2.5%, SK Hynix’s stock rose by 1.4%, then pulled back slightly. The benchmark index has surged 76% last year and has gained a total of 42% since 2026.

For a long time, Korean stocks, considered undervalued by foreign investors, have become clear winners in the global market. The so-called “AI panic trading” has proven beneficial for Korea, as software stocks play a secondary role in the country, while hardware manufacturers continue to drive the market higher. Corporate governance reforms have also fueled this rally, with expectations that the parliament will pass a bill later Wednesday requiring companies to cancel treasury stock.

The latest rise in the Korean stock market is part of a broader surge in global tech stocks, following agreements between Meta Platforms (META.US) and AMD (AMD.US) to purchase chips and computers for running AI models.

“Korea continues to benefit from multiple structural tailwinds, with the positive spillover effects from the memory supercycle increasingly spreading to a broader tech ecosystem,” said Homin Lee, senior macro strategist at Lombard Odier. “Even if the road beyond 6,000 points proves to be more turbulent, we still see significant upside potential for the index over the next 12 months.”

Last week, the U.S. Supreme Court’s reversal of former President Trump’s tariffs was also seen as a tailwind. Tiffany Hsiao, an investment manager at Matthews Asia, expects that “Korean exporters related to U.S. consumer demand, especially in electronics and components, will benefit from reduced tariff uncertainties.”

Initial signs indicate that retail investors in Korea, who traditionally favored U.S. stocks over domestic ones, are returning. If this shift continues, it could propel the next wave of gains.

Despite its smaller economy, South Korea’s total market capitalization has surpassed Germany and is on par with France. Although such rapid gains often trigger alarms, analysts remain optimistic, calling this a watershed moment for Korea.

Nomura recently raised its mid-year target for the Korea Composite Index to as high as 8,000 points, citing the memory supercycle, strong earnings in AI capital expenditure chains and defense sectors, and valuation re-ratings of the physical AI chain.

“If Korea can accelerate corporate value reforms and structural improvements in the Kosdaq, we expect further revaluation beyond 8,000 points,” said Nomura analysts led by Cindy Park and Dongmin Lee in a report. “The path to 8,000 points for the Korea Composite Index depends on whether Korea can implement business law reforms and avoid setbacks on shareholder rights.”