South Korea Crushes Global Benchmarks with Best Stock Rally Since 1999

South Korea’s stock market renaissance in 2025 was one for the history books.

The Korean benchmark’s performance has been driven by chip heavyweights Samsung Electronics Co. and SK Hynix Inc., as well as defense and nuclear firms. (Photo: Christian Bolz Wikimedia Commons) 

Buoyed by world-beating gains in arms exporters and eye-popping surges in AI and K-beauty shares, the market capped its strongest advance in a quarter century. Youkyung Lee reported for Bloomberg News.

The Kospi Index has soared 76% this year, compared with the S&P 500’s 17% gain and the MSCI Asia Pacific Index’s 25% advance.

The Korean benchmark’s performance — the best among major equity gauges — has been driven by chip heavyweights Samsung Electronics Co. and SK Hynix Inc., as well as defense and nuclear firms.

Analysts see further upside ahead, with Citigroup Inc., JPMorgan Chase & Co., and Nomura Holdings Inc. among brokers forecasting at least another 20% climb next year.

Strong earnings growth should bolster that trajectory, analysts said.

The biggest artificial intelligence winners were not conventional chipmakers or large-cap names but proxy plays, including power transformer maker Hyosung Heavy Industries Corp. and nuclear power provider Doosan Enerbility Co., whose shares are up more than 320% each this year, according to Korea Exchange data.