Korean Stock Market Surpasses Canada to Rank Seventh Globally

According to data compiled by Bloomberg, the total market capitalization of listed companies in South Korea has increased by 71% this year, reaching $4.59 trillion, surpassing Canada's $4.5 trillion and becoming the seventh-largest stock market globally.

The surge in demand for AI chips has significantly boosted the semiconductor heavyweights in the South Korean market. Recently, the market value of Samsung Electronics broke through $1 trillion, and both Samsung Electronics and SK Hynix have seen their stock prices more than double this year. The two companies together account for 45% of the weight in the South Korean benchmark index, causing the upward expectations of the AI storage cycle to be better reflected in the Kospi index.

This structure has also widened the gap between South Korea and Canada. The Kospi has risen by more than 70% this year, while the S&P/TSX Composite Index, which is heavily weighted with resources and finance in Canada, has only increased by about 7%; the South Korean market has also leveraged this round of semiconductor momentum to surpass major European markets such as the UK and France.

Ha SeokKeun, Chief Investment Officer of Eugene Asset Management, stated:

“Driven by the AI-driven storage cycle, the market value of South Korea may further expand; in contrast, Canada, with its high concentration in energy and finance, has more limited space.”