South Korea’s equity market has overtaken India’s to rank sixth globally in terms of total market capitalization. This shift, driven by surging valuations in major semiconductor firms, carries significant implications for investors focused on AI infrastructure and technology sectors.
As of early June, the aggregate market value of companies listed in South Korea surpassed US$5 trillion, according to Bloomberg data, outpacing India’s US$4.8 trillion total. This advance represents an 86% increase in South Korea’s market capitalization since the beginning of the year, fueled primarily by the outperformance of chip makers such as Samsung Electronics and SK Hynix.
Samsung Electronics, whose market value has now crossed 2,000 trillion won (approximately US$1.32 trillion), saw its operating profit in the first quarter rise more than eightfold to 57.2 trillion won. SK Hynix, meanwhile, joined the US$1 trillion valuation club, becoming only the third Asian chipmaker to reach that threshold. Over the past year, SK Hynix shares have climbed over 1,000%, largely on demand for its high bandwidth memory chips widely used in artificial intelligence hardware solutions. First-quarter net profit at the company expanded 398% year-on-year, with margins also reaching record levels.
South Korea’s Kospi index, which has gained over 100% since the start of the year, has helped the country’s market capitalization move past other major economies, overtaking Canada, Germany, the UK, and France in quick succession.
Market commentators note that the current valuation surge is concentrated in the semiconductor sector. Much of South Korea’s broader equity gains hinge on the ongoing strength of the global memory chip market and, by extension, the continued performance of Samsung Electronics and SK Hynix.
By comparison, India’s equity market has faced pressures including currency depreciation, heightened foreign investor outflows, and fewer companies with direct exposure to AI infrastructure.
