The KOSPI index has surged nearly 175% over the past year — one of the strongest rallies among major global markets.
📈 What’s driving this rally?
One sector: Semiconductors.
Chipmaking giants like Samsung Electronics and SK hynix carry massive weight in the index. When their earnings expectations rise, the entire market moves higher.
📦 Export numbers are explosive:
· Early February data: Daily exports up +47% YoY
· Semiconductor exports alone: +134% YoY
· That's more than one-third of total shipments
🧠 The AI effect:
Global AI demand is rising → Korean chip exports are booming → Revenues of top listed companies are surging → Stock market hits new highs
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🔄 Meanwhile, what’s happening with crypto?
South Korea has historically been one of the most retail-driven crypto markets in the world.
During bull runs, local demand often becomes so strong that Bitcoin and major cryptos trade at higher prices on Korean exchanges compared to global markets.
That difference is called the Kimchi Premium 🇰🇷🥘
📉 But now?
That premium has compressed significantly.
Since the October market crash last year, a portion of retail capital that once flowed into crypto appears to be rotating into domestic equities — especially AI and semiconductor stocks that are benefiting directly from the global AI boom.
🧠💰 Retail liquidity in Korea hasn’t disappeared.
It’s just chasing AI instead of crypto.