At the start of 2026, the Korea Composite Stock Price Index (KOSPI) continued its upward trend, repeatedly breaking historical records. In particular, the spread of artificial intelligence (AI) and optimistic expectations for the semiconductor industry stimulated investor sentiment, with major semiconductor stocks leading the index's rise.
On January 6th, the KOSPI index on the Korea Exchange rose 67.96 points (1.52%) from the previous trading day, closing at 4525.48 points. Since the beginning of the new year, the index has surged by approximately 100 points daily for three consecutive trading days, accumulating a gain of over 300 points in just three days, ultimately breaking through the 4500-point mark. This is the first time the KOSPI index has ever reached this level, interpreted as a reaction of the domestic market to the global trend of technology dominance.
Experts believe the semiconductor industry is the core driver of this rally. In particular, representative memory semiconductor stocks such as Samsung Electronics and SK Hynix have performed strongly due to increased demand for AI servers and expectations of improved earnings. Some analysts point out that the global semiconductor market has recently entered a "supercycle" or a long-term boom phase, which is understood as the result of a rebound in memory prices and supply adjustments.
Furthermore, the expansion of artificial intelligence technology is another factor driving up investment demand. With the surge in demand for high-performance computing, including generative AI, the market is increasingly focused on high-bandwidth memory semiconductors essential for related infrastructure. The global competitive advantage of domestic semiconductor companies in this field has also stimulated investor interest.
Led by the Nasdaq in the US, global stock markets are showing signs of recovery, with the South Korean stock market following suit and continuing its upward trend. However, some argue that given the rapid pace of the index's rise, the risk of short-term overheating should be noted. In fact, if repeated surges driven by tech stocks occur, the market may become more sensitive to external variables, thus increasing volatility warrants attention.
This trend is likely to continue in the short term, driven by optimistic expectations centered on technology and semiconductors. The market believes that next quarter's earnings outlook, the trend of US benchmark interest rates, and the speed of global economic recovery will be key variables determining the future direction of the index.
