BREAKING: The South Korean stock market just reached ALL-TIME HIGHs

Blotienso · 2026-02-26T08:05:14+00:00

The KOSPI index surged nearly 175% over the past year, primarily driven by the semiconductor sector, with chip exports soaring 134%. As the stock market hits new highs, the cryptocurrency market struggles, indicating a shift in personal investor focus towards AI and semiconductors.

Blotienso

2026-02-26 08:05:14

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The KOSPI index has already increased nearly 175% over the past year, one of the strongest rallies among major global markets. This surge is primarily driven by one sector: semiconductors.
Chipmakers like Samsung Electronics and SK Hynix hold significant weight in this index, meaning that when profit expectations for the semiconductor industry rise, the entire market follows suit.
And those expectations are currently being fueled by exports. South Korea’s early February data shows that daily exports surged by +47% year-over-year, despite fewer working days due to the Lunar New Year holiday.
Exports of semiconductors alone increased by +134% compared to the same period last year, accounting for more than one-third of total exports.
Since semiconductor exports directly boost revenue for South Korea’s largest listed companies, the rapid increase in global AI demand is quickly translating into higher profit expectations in the stock market.
At the same time, another divergence is emerging.
While the South Korean stock market continues to set new records, the cryptocurrency market is struggling to regain its growth momentum.
South Korea has long been one of the most heavily retail-driven cryptocurrency markets in the world. During bull cycles, domestic demand is often so strong that Bitcoin and other major cryptocurrencies are traded at higher prices on Korean exchanges than on global markets.
This price difference is called the “Kimchi Premium,” and traditionally, it has been seen as a sign of strong retail investor participation in the crypto market.
Currently, this premium has significantly decreased.
Since the market crash in October last year, some of the retail investor capital previously flowing into cryptocurrencies appears to be shifting toward domestic stocks, especially AI and semiconductor stocks—sectors that benefit directly from the global AI investment boom.
Retail investor liquidity in South Korea may not have disappeared entirely. They may simply be pursuing AI investments instead of cryptocurrencies.

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