KOSPI index nears 3,000 points, poised to close at highest since January 2022

KOSPI index nears 3,000 points, poised to close at highest since January 2022

The KOSPI index has been on a steady upward trajectory, nearing the 3,000 points mark, and is poised to close at its highest level since January 2022. This significant milestone is attributed to a series of positive developments, including the visit of South Korea’s newly elected President Lee Jae-myung to the nation’s main stock exchange and the growing interest from foreign investors in South Korean bonds and equities.

President Lee Jae-myung’s visit to the Korea Exchange on Wednesday, just days after taking office, was a clear indication of his commitment to boosting the market. This visit comes at a time when the benchmark Kospi Index has been experiencing six consecutive sessions of gains, with the gauge rising as much as 1.1% on Wednesday to 2,904, its highest level since January 2022 [1].

Foreign investors have been increasingly active in the South Korean bond market, with a record pace of purchases in May. Overseas investors snapped up a net 11.34 trillion won ($8.3 billion) of listed bonds last month, marking the largest monthly inflow since Bloomberg began compiling the data in 1998 [2]. This trend is expected to continue as South Korea’s inclusion in the FTSE Russell’s World Government Bond Index is anticipated to boost demand further.

In addition to bonds, foreign investors have also stepped up their exposure to South Korean equities. Since the election of President Lee Jae-myung, foreign investors have bought a net 3.81 trillion won worth of Kospi-listed stocks, helping push the benchmark Kospi index to its highest level since 2022 [2]. This increased interest is driven by optimism that the new president’s push for shareholder-friendly policies will deliver stronger returns.

The upward trend in the KOSPI index is also supported by the appointment of Ha Jung-woo, head of Future AI Centre at Naver, as the country’s first AI secretary by President Lee Jae-myung. This appointment underscores the administration’s commitment to boosting investment in artificial intelligence, a sector that has been performing strongly in the market [4].

While geopolitical tensions in the Middle East continue to pose a risk to global financial markets, the South Korean market has shown resilience, with the KOSPI index remaining strong. The won has been quoted at 1,361.0 per dollar, up 0.18% from its previous close, indicating a stable currency environment [4].

In summary, the KOSPI index’s nearing of the 3,000 points mark is a testament to the positive market sentiment driven by President Lee Jae-myung’s commitment to market boosting, increased foreign investment, and the administration’s focus on AI investment. These factors are expected to continue supporting the South Korean market in the coming months.

References:
[1] https://www.allsides.com/news/2025-06-10-2115/banking-and-finance-south-korea-president-visits-stock-exchange-he-pledged-help
[2] https://www.bloomberg.com/news/articles/2025-06-12/foreign-investors-pour-into-south-korean-bonds-at-record-pace
[4] https://economictimes.indiatimes.com/markets/stocks/news/s-korean-shares-close-at-3-1/2-year-high-on-ai-rally-sk-hynix-hits-record-high/articleshow/121879341.cms