Here’s why the Kospi Composite Index is in an unstoppable bull run

The Kospi Composite Index continued its strong bull run, hitting its highest level on record. It jumped to a record high of KRW 4,680, up by over 105% from its lowest level in 2025. This surge coincided with the ongoing South Korean won plunge, which rose to KRW 1,475, up by 3% above the lowest level this month.

Kospi Index nears president’s target of KRW 5,000

The Kospi Composite Index has been in a strong rally since the new president promised to boost its performance to KRW 5,000, something that many analysts believed was unachievable as it was trading at KRW 2,700 when he made the pledge.

The index soared today as the main stock market exchange said that it would increase the number of trading hours to meet the rising demand for shares, especially by retail traders. It will increase the trading hours from 6.5 hours today to 12 hours in the coming months.

The main catalyst for the ongoing Kospi Index surge is the ongoing AI boom, which has led to a big increase in demand for products made by companies like Samsung, SK Hynix, and Hanmi Semiconductor. Samsung and SK Hynix are the two biggest companies in the index with a market capitalization of over $612 billion and $350 billion, respectively.

The best-performing companies in the Kospi Index this year are companies like Kumho Electric, Keyang Electric Machinery, Hanwa Systems, Hyundai Autoever, and Hyundai Glovis.

Meanwhile, the index has jumped because the ongoing South Korean won plunge, with the USD/KRW nearing its highest level in 2025. It has jumped from a low of 1,430 on December 25 to the current 1,473, and is now in its worst performance since 1998.

A deteriorating South Korean won boosts the country’s stock market by making products more affordable abroad, which may help to boost their market share over time.

Meanwhile, the South Korean Central Bank has maintained a cautious approach as it worked to stabilize the economy amid the ongoing tariffs with the United States. The bank slashed interest rates by 0.25% to 2.5% in May and left them there. The lower rates have pushed more investors to move to the stock market.

Kospi Composite Index technical analysis 

KOSPI Index chart | Source: TradingView 

The daily timeframe chart shows that the Kospi Composite Index has been in a strong uptrend in the past few months, moving from a low of KRW 2,281 in April to KRW 4,654.

It has moved above the important resistance level at KRW 4,223, its highest level on November 3rd. Such a move will invalidate the double-top pattern, a risky bearish reversal sign.

The index remains above all moving averages, while the Average Directional Index (ADX) has moved to 84, a sign that bulls maintained the momentum.

Also, the Relative Strength Index (RSI) has moved to the overbought level of 80. Therefore, the most likely scenario is where the index continues rising as bulls target the key resistance level at KRW 5,000 later this year.

The alternative scenario is where the index retreats and retests the key support level at KRW 4,223, down by nearly 10% from the current level.

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