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Analysis South Korea’s stock market soars, but institutional risk grows underneathEquity boom driven by AI, semiconductors and shipbuilding masks fragile domestic demand and policy inertia The Korea Composite Stock Price Index (KOSPI) — the stock market index that tracks the performance of all common shares listed on the Korean Stock Exchange — crossed 4,000 points for the first time on Monday. It delivered a symbolic milestone for President Lee Jae-myung just five months into his term but deepened concerns that financial market performance is distorting reform priorities and overstating institutional resilience. MARKET LED, NOT POLICY DRIVEN The surge in South Korean equities has been driven by external demand and sector specific momentum rather than domestic policy. Semiconductor exports rose 17% year-on-yearin the first nine © Korea Risk Group. All rights reserved. |





