Korea Crushes Global Benchmarks With Best Stock Rally Since 1999

Market Performance - South Korea's stock market, represented by the Kospi Index, has surged 76% in 2025, outperforming the S&P 500's 17% and MSCI Asia Pacific Index's 25% gains, marking the strongest advance in a quarter century [2][3] - The performance has been significantly supported by major players in the semiconductor industry, such as Samsung Electronics and SK Hynix, as well as defense and nuclear firms [2] AI and Infrastructure Stocks - The biggest beneficiaries of the AI boom were not traditional chipmakers but proxy plays like Hyosung Heavy Industries and Doosan Enerbility, both of which saw their shares increase by over 320% this year [4] - Investor interest in power grid and infrastructure stocks is expected to persist into 2026, with companies like HD Hyundai Electric poised for a multi-decade re-rating due to trends in grid modernization and decarbonization [5] Semiconductor Sector - Samsung and SK Hynix have solidified their positions as leading manufacturers of memory chips, with Samsung's stock rising 125% and SK Hynix's stock increasing approximately 270% this year due to heightened demand from global tech companies [6][7] - Related firms, including SK Square and Korea Circuit, have also experienced significant stock price increases of over 330% each, driven by shortages in memory chips [7] Defense Industry - Increased defense spending in Europe and Asia, influenced by geopolitical shifts, has led to renewed interest in Korean defense contractors known for their ability to deliver weapons quickly and cost-effectively [8]