KOSPI surges to record 8,476 as AI chip stocks rally

South Korea’s benchmark KOSPI climbed from a 2022 low of 2,132 to a record 8,476, an increase of roughly 295%. The advance has been concentrated in technology names, led by Samsung Electronics and SK Hynix, as demand for chips used in artificial intelligence applications has risen.

Samsung Electronics has gained about 163% year-to-date and roughly 465% over the past 12 months, lifting its market value above $1.38 trillion. SK Hynix has risen about 258% year-to-date and nearly 1,000% over the last year, joining the group of companies with market capitalizations near $1 trillion. SK Hynix reported first-quarter revenue of 52.58 trillion won, up 60% quarter-on-quarter and 198% year-on-year, and cash on the balance sheet increased to more than 54.3 trillion won from 14.3 trillion won a year earlier.

Other large contributors to the index’s gains include LG Electronics, which reached a record share price of 293,000 won after a recent partnership announcement with a major cloud company, recording about a 315% increase over the past 12 months. Suppliers and technology-service firms such as LG CNS, LG Innotek, Solus Advanced Materials, Hyundai Autoever and Doosan have also posted strong returns as investors seek exposure to the AI hardware and software supply chain.

Retail participation has risen during the rally, with smaller investors increasing purchases amid rising prices. A weaker South Korean won has made local equities more attractive to overseas buyers and supported foreign inflows earlier in the run. Market data show that foreign investors bought heavily at times but have also shown periods of selling as valuations rose.

On technical measures, the KOSPI cleared a resistance level at 8,036, the May 13 high, and remains above its key moving averages. The Relative Strength Index has trended higher. Some traders who follow trend rules have identified the round number of 10,000 as a possible target.

The recent advance follows the deep 2022 trough and has been concentrated in firms exposed to growing AI computing demand. Future moves in the index will reflect changes in chip and AI-related revenue, foreign investor flows, currency moves and broader market positioning.