On February 27, South Korea’s Composite Index (KOSPI) closed sharply higher by 3.67% at 6307.27 points, rising for six consecutive trading days. It not only set a new all-time high, but also had a cumulative increase of as high as 49.67% since 2026, becoming one of the best-performing major stock indexes in the world.

The sharp rise of South Korea’s stock market in this round is mainly driven by multiple positive factors. First, the Bank of Korea recently announced that it will keep the benchmark interest rate unchanged at 2.50%, sending a signal of monetary policy easing and providing sufficient liquidity support for the market. Second, the global AI upsurge continues. As a core link in the global supply chain, South Korea’s semiconductor, display panel and other technology industries benefit from the explosion of demand for AI chips, advanced storage and other products, and the stock prices of related leading enterprises lead the gains.

In addition, the continuous inflow of foreign capital is an important driver. Data show that overseas investors have net bought South Korean stocks for many consecutive days, optimistic about South Korea’s position in the global technology industrial chain and the prospect of economic recovery. Market analysis shows that the strong performance of South Korea’s stock market also reflects the global capital’s enthusiasm for allocating Asian technology sectors. However, the index has risen sharply in the short term, and some institutions have reminded of the overheating risk in the market, needing to be vigilant against increased volatility in the future.