South Korean Stocks’ World-Beating Surge Creates Bubble Risk
Get caught up.
There is little doubt which stock market is winning this year: South Korea. The Kospi benchmark has jumped almost 60%, the most among major indexes, and total market value of listed companies has now eclipsed that of the UK.
The justification for the rally is AI, and demand for high-bandwidth memory and other chips used in data centers which is boosting earnings for Korean memory makers. Samsung Electronics, which dominates global supply along with SK Hynix and Micron Technology, posted a 755% increase in profit in the March quarter.