The KOSPI Bubble

The Korean Composite Stock Price Index (KOSPI) has surged over 88% in 2026 and 200% in two years, driven primarily by semiconductor companies Samsung Electronics and SK Hynix, which now account for nearly 60% of the index. This extreme concentration poses regulatory risks, as Goldman Sachs warns that a one percentage point increase in combined weight could force foreign institutional investors to sell due to diversification rules. The KOSPI has become a bet on global AI infrastructure rather than a true gauge of South Korea's economy.