South Korea's Stock Market Outperforms Global Markets in 2026
In 2026, South Korea has emerged as the top-performing stock market globally, with its Kospi index rising nearly 60%. The iShares MSCI South Korea ETF (EWY) has surged over 88% this year. This performance is largely driven by semiconductor giants Samsung and SK Hynix, which together make up more than half of the Kospi's value. The strong gains are attributed to a global shortage of memory chips, increased demand from hyperscalers, and growth in AI computing infrastructure. Analysts at Goldman Sachs have set an ambitious 12-month target for the Kospi index at 9,000 points — implying potential further gains of over 34%. Korean stocks also appear undervalued compared to global benchmarks like the S&P 500. Investors are being encouraged to consider exposure through ETFs such as EWY. The fund is heavily weighted toward Samsung Electronics and SK Hynix, which have both seen significant price appreciation due to their dominant positions in semiconductor manufacturing.
Topics: foreign investment Kospi index S&P 500 semiconductors South Korea stock market