South Korea’s stock market is experiencing a significant surge, with the number of listed companies boasting a market capitalization exceeding 1 trillion won (approximately $679.7 million) reaching a new milestone of over 400 firms this year. This remarkable growth follows a robust recovery in the market, as recent data indicates.
Specifically, the Korea Exchange, the nation’s primary bourse operator, reported that 405 companies, including preferred shares, had a market capitalization surpassing 1 trillion won as of Wednesday. This achievement underscores the strong performance across various sectors of the South Korean economy.
Delving into market specifics, 267 of these high-value companies are listed on the benchmark Korea Composite Stock Price Index (KOSPI). The tech-focused Kosdaq market contributed 137 firms to this elite group, while one company from Konex, the exchange dedicated to small and medium-sized enterprises (SMEs) and venture firms, also crossed the 1 trillion won threshold.
Further highlighting this robust market expansion, 79 of these companies have achieved an even more impressive market capitalization exceeding 10 trillion won.
This current bullish trend represents a dramatic turnaround. For context, just before the US and Israel initiated strikes on Iran on February 27, the count of companies with over 1 trillion won in market capitalization stood significantly lower at 377. The market has since demonstrated exceptional resilience and growth.
The recent rally in the South Korean stock market is largely attributed to a resurgence in interest surrounding artificial intelligence (AI) technologies. This renewed AI enthusiasm, coupled with the anticipation of the upcoming corporate earnings season, has fueled the ongoing upward momentum across the national bourse.
