South Korea Rises to 8th in Global Market Cap as AI Boom Lifts KOSPI

The KOSPI closed at 6,641.02 on April 28. The photo shows the display board at the headquarters of Shinhan Bank. / Photo courtesy of Shinhan Bank

South Korea’s stock market has surged to a new global standing, with the benchmark KOSPI index climbing past the 6,600 level and pushing the country into the world’s top tier by market capitalization.

According to data cited by Bloomberg, the total market value of South Korean listed companies reached approximately $4.04 trillion as of April 27, marking an increase of more than 45% this year. This surge allowed South Korea to overtake the United Kingdom, whose market capitalization stood at about $3.99 trillion, up only around 3% over the same period.

The shift is particularly striking given that as recently as late 2024, the UK market was nearly twice the size of South Korea’s. Analysts now view the reversal as a sign of structural change rather than a temporary rally.

At the center of the surge is the rapid expansion of artificial intelligence (AI) and semiconductor demand. Major players such as Samsung Electronics and SK hynix have benefited directly from rising demand for high-bandwidth memory (HBM), a critical component for AI computing. Their strong performance has been a key driver behind the market’s upward momentum.

A similar trend is visible in Taiwan, where TSMC has led gains, reinforcing Asia’s growing influence in the global technology supply chain.

Globally, the United States remains the dominant market with a capitalization of around $75 trillion, followed by mainland China, Japan, Hong Kong, India, Canada, and Taiwan. Taiwan had already surpassed the UK earlier this year, highlighting the shift toward technology-driven markets.

Market experts describe the development as part of a broader restructuring centered on AI supply chains. JPMorgan Asset Management’s Francesco Chan noted that the rise of South Korea and Taiwan reflects “a structural rebalancing driven by dominance in AI hardware,” rather than a simple shift in capital flows.

Investor sentiment has also been fueled by expectations of a new “memory supercycle,” as demand for high-performance chips accelerates across generative AI, data centers, and autonomous driving technologies. South Korean firms have emerged as key players in this supply chain, attracting increasing foreign investment.

In contrast, the UK market has shown relatively modest growth. The FTSE 100 index has risen by around 4% this year, supported by stability in traditional sectors such as finance, energy, and consumer staples, but has not significantly participated in the AI-driven rally.

Domestic policy factors have also played a role in South Korea’s market re-rating. Government-led initiatives aimed at enhancing corporate value, including higher dividends, share buybacks, and governance reforms, have improved investor confidence and attracted global capital.

Looking ahead, the sustainability of the rally remains a key question. While many analysts are optimistic about long-term AI demand, they caution that semiconductor cycles, global interest rate trends, and geopolitical risks could introduce volatility.

Industry observers say the recent rise of South Korea’s stock market reflects more than a ranking shift, signaling the country’s growing role as a central player in the global transition from traditional industries to advanced technology.

Jung So-yeon