The South Korean stock market hits a 10-month high, and this time it's not just the semiconductor stocks leading the way

Wallstreetcn
2025.05.30 07:08
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The South Korean stock market is experiencing a diversified upward trend, breaking away from its single reliance on technology giants like Samsung Electronics. On May 29, a total of 91 constituent stocks reached a 52-week high in a single day, the highest since May 2021, covering multiple industries including brokerage, retail, defense, and nuclear power. The weight of Samsung Electronics in the KOSPI index has decreased from 20% to 16%

The rise of the South Korean stock market is spreading to more and more industry sectors, no longer relying on technology giants like Samsung Electronics.

On May 30, the South Korean KOSPI index reached a new high since August of last year on Thursday (May 29), with 91 constituent stocks hitting 52-week highs, marking the highest single-day record since May 2021.

Notably, the KOSPI index has risen over 5% this month and has increased nearly 20% from the low reached in early April, approaching the technical bull market territory. Year-to-date, the KOSPI index has risen over 12%.

Analysis indicates that this phenomenon clearly shows that investors in the South Korean market are gradually breaking away from reliance on a few technology giants and are instead looking to broader industry opportunities.

For those investors accustomed to the notion that "when Samsung rises, Korean stocks rise," the emergence of a diversified market in South Korea may signal that a market long dependent on a single technology pole is seeking new growth engines.

Samsung Electronics' Weight Shrinks, South Korean Stock Market Blooms

Historically, Samsung Electronics, as the most valuable listed company in South Korea, has been the main driving force behind the performance of the South Korean stock market.

However, data shows that Samsung Electronics' weight in the KOSPI index has decreased from over 20% a year ago to about 16%, reflecting a healthy transformation in market structure.

While the KOSPI index has risen over 5% this month, Samsung Electronics' stock price has only increased by about 2%, further confirming the trend of diversified market drivers. This broadening of the market is often seen as an important indicator of a healthy bull market.

It is noteworthy that as the dominance of the chip sector loosens, the South Korean stock market is blooming across various sectors, with stocks hitting 52-week highs on Thursday covering multiple industries:

Holding companies (Hanwha Group and Doosan Group), brokerages (Mirae Asset Securities), retailers (Hyundai Department Store), defense companies (Hyundai Rotem), and nuclear power-related companies (Hyundai Engineering & Construction).

Reports indicate that the significant rise in holding companies, brokerages, and consumer stocks is mainly driven by market optimism regarding more corporate reforms and new stimulus measures to be introduced after the presidential election on June 3.

Meanwhile, South Korean defense and nuclear power-related stocks are benefiting from investor optimism about the structural growth in global military and energy demand

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