🚨 KOSPI Breaks 3000: Return After 3 Years and 5 Months, Samsung Electronics Challenges 60,000 Won
Today Korean Economic News | 2025.06.22
📌 'Three Thousand KOSPI' Era Reopens, Driven by New Government Support Expectations and Foreign Investment
💬 The KOSPI index broke the 3000 level during trading on June 20, 2025, reopening the 'Three Thousand KOSPI' era for the first time since January 2022, after 3 years and 5 months. This achievement came just 17 days after President Lee Jae-myung took office. New government's stock market support policies and large foreign investor buying drove the rise. However, Samsung Electronics is still stuck at the 60,000 won threshold, showing an unusual situation where KOSPI rises without Samsung Electronics leading, unlike in the past. Expectations for government's corporate law changes, dividend tax reforms, and extra budget are positively affecting the entire market.
1️⃣ Easy to Understand
Korea's main stock market index, KOSPI, finally broke the 3000 level. This is the first time in 3 years and 5 months, which is very good news for stock investors.
Let me explain why 'KOSPI 3000' is important. KOSPI is like a thermometer that shows the health of Korea's entire stock market. The number 3000 means the stock market is very active and investors have high confidence.
The last time KOSPI went over 3000 was in January 2022. Since then, the stock market had a hard time due to COVID-19 effects, interest rate increases, and economic recession worries. Now it has recovered to the 3000 level again.
The biggest reason for this rise is expectations about the new government. This achievement came just 17 days after President Lee Jae-myung took office. Investors have high hopes for the new government's economic policies and stock market support plans. People are especially interested in corporate law changes that make companies pay more dividends to shareholders, tax reforms that reduce dividend taxes, and extra budget spending to boost the economy.
Foreign investors are also putting a lot of money into Korea's stock market. They seem to think Korean stocks have been undervalued and see this as a good investment opportunity.
But there's an interesting change with Samsung Electronics' role. In the past, KOSPI would only go up when Samsung Electronics went up too. This time, KOSPI broke 3000 even though Samsung Electronics couldn't pass 60,000 won. This shows other industries and companies are growing well together, which is a positive sign.
Samsung Electronics is currently rising due to expectations about AI semiconductors (HBM), but it still hasn't crossed the 60,000 won level. The NVIDIA HBM verification results scheduled for June 25 will be an important factor.
Overall, this is a positive sign that Korea's stock market is getting active again, but we need to keep watching domestic and international economic situations.
2️⃣ Economic Terms
📕 KOSPI (Korea Composite Stock Price Index)
KOSPI is short for Korea Composite Stock Price Index, which shows the overall trend of Korea's stock market.
- It calculates all company stock prices listed on the securities market together.
- It uses January 4, 1980 as the base date (100), so current 3000 level means 30 times growth.
- Higher KOSPI means more active stock market and higher investor confidence.
📕 Corporate Law Reform
Corporate law reform means changing company laws to improve corporate governance and protect shareholder rights.
- It includes making companies pay more dividends to shareholders or strengthening management responsibility.
- It guides companies to have shareholder-friendly policies, making stocks more attractive.
- It provides a better investment environment for investors.
📕 Foreign Net Buying
Foreign net buying means the net increase after subtracting stocks sold by foreign investors from stocks they bought.
- Positive (+) means foreigners bought more, negative (-) means they sold more.
- When foreign net buying increases, money flows into the stock market, creating upward pressure on stock prices.
- Foreign investment is an important indicator of global confidence in the domestic stock market.
📕 HBM (High Bandwidth Memory)
HBM is high bandwidth memory, a super-fast memory semiconductor needed for AI and graphics processing.
- It provides much faster data processing speed than regular memory.
- It's an essential component used in AI servers and data centers.
- Samsung Electronics and SK Hynix lead the global HBM market.
3️⃣ Principles and Economic Outlook
✅ 'Policy Rally' Created by New Government Policy Expectations
Let's analyze how Lee Jae-myung government's stock market-friendly policies are driving stock market growth.
First, shareholder-friendly policies through corporate law reform are the core driving force. The new government is pushing corporate law reforms to make companies pay more dividends to shareholders. Currently, Korean companies' dividend levels are low compared to advanced countries, and they want to increase dividends by strengthening legal obligations. This means direct profit increases for investors, so stock attractiveness greatly improves. Especially when large companies with lots of cash return their accumulated funds to shareholders, investors' real returns will improve. Expectations for such policy changes are stimulating stock buying sentiment.
Second, dividend tax reforms and stock market support policies are improving the investment environment. The government is considering reducing tax burden on dividend income to increase investors' real profits. They're also preparing various stock market support measures like expanding tax benefits for individual investors and increasing pension fund stock investments. Especially if public pension funds like National Pension and Government Employees Pension increase their stock investment ratios, huge amounts of money could flow into the stock market. This means structural expansion of fund supply, not just one-time stimulus, becoming a medium to long-term positive factor for the stock market.
Third, supplementary budget and economic stimulus policies are raising expectations for corporate performance improvement. The new government announced plans to organize a large supplementary budget to revive the stagnant economy. This means expanded government investment in various fields like construction, infrastructure, and renewable energy, expected to lead to increased orders and sales for related companies. Also, the domestic market is expected to become more active through consumption coupon distribution and expanded tax support. When companies' performance improves, stock prices naturally rise, so investors are buying stocks expecting this positive cycle.
Policy rallies are based on investor expectations, so whether actual policy implementation and effects meet expectations will determine future stock market trends.
✅ Foreign Capital Inflow and Resolution of Korean Stock Undervaluation
Let's look at why foreign investors are investing heavily in Korea's stock market and its impact.
First, Korean stock undervaluation is providing attractive investment opportunities for foreign investors. For the past few years, Korea's stock market has been relatively undervalued compared to global markets. Major valuation indicators like Price-to-Earnings Ratio (PER) and Price-to-Book Ratio (PBR) have maintained lower levels than advanced country averages. Especially, even globally competitive companies like Samsung Electronics and SK Hynix are undervalued compared to overseas peer companies, so foreigners see this as an opportunity to buy quality stocks at 'discounted prices'. Foreign funds are flowing in from this value investing perspective.
Second, global interest in Korea's semiconductor and AI-related companies is increasing. As the artificial intelligence boom continues, demand for AI semiconductors and memory semiconductors is rapidly increasing, and Korean companies have world-class technology in this field. Samsung Electronics and SK Hynix have monopolistic positions in the HBM market, and related equipment and material companies also play key roles in global supply chains. Foreign investors believe this technological advantage will lead to high returns in the long term. Especially, Korea's advantageous position in technology competition with China is also increasing investment attractiveness.
Third, won strength and trust in the new government are reducing investment risks. Recently, the won/dollar exchange rate has stabilized, reducing foreign investors' currency risk concerns. Also, as trust in the new government's market-friendly policy direction and economic reform will increases, expectations for resolving the 'Korea Discount' are growing. Foreigners expect Korea to greatly increase stock market attractiveness through corporate governance improvements and shareholder-friendly policies like Japan did. Actually, many see the possibility of recreating Japan's case of greatly boosting the stock market through Abenomics in Korea too.
Foreign capital inflow can enhance Korea's stock market global status while also being a volatility expansion factor, so fundamental improvements must support sustainable growth.
✅ Meaning and Implications of KOSPI Rise Without Samsung Electronics
Let's analyze the meaning of this phenomenon different from traditional KOSPI rise patterns.
First, it's a positive sign showing Korea's stock market diversification and maturity improvement. In the past, Korea's stock market had very high dependence on Samsung Electronics, to the point where people said 'when Samsung Electronics goes up, KOSPI goes up, and when Samsung Electronics falls, KOSPI falls too.' Samsung Electronics' share in KOSPI sometimes exceeded 20%. But this time, KOSPI broke 3000 even when Samsung Electronics was stuck at the 60,000 won threshold. This means other industries and companies are growing evenly. Market diversification is happening as quality companies in various industrial fields like secondary batteries, bio, renewable energy, games, and entertainment are growing.
Second, it reflects Samsung Electronics' relative attractiveness decline and emergence of new growth stocks. Samsung Electronics is still an excellent company, but it's hard to expect explosive growth like before due to smartphone market maturation and cyclical volatility in the memory semiconductor market. Meanwhile, other companies are getting more attention in new growth fields like AI, electric vehicles, and ESG. SK Hynix is ahead of Samsung Electronics in the HBM field, and LG Energy Solution is leading the electric vehicle battery market. Platform companies like Kakao and Naver are also benefiting from AI and digital transformation. Investors are diversifying portfolios by focusing on these new growth drivers.
Third, Samsung Electronics' HBM-related uncertainty is causing short-term hesitation. Samsung Electronics is causing investor concerns by falling behind SK Hynix in the HBM market, which is core to AI semiconductors. Especially, NVIDIA's HBM3E verification results scheduled for June 25 are acting as an important variable. If verification succeeds, large-scale sales are expected from the third quarter, but if it fails, there are concerns about falling further behind in competition. Due to this uncertainty, investors tend to invest in other certain growth stocks rather than Samsung Electronics. However, if Samsung Electronics resolves HBM-related issues and performance improves, it could lead KOSPI rise again.
KOSPI rise without Samsung Electronics is a positive phenomenon showing Korea's stock market maturation, but long-term recovery of representative companies' competitiveness is also needed.
4️⃣ In Conclusion
KOSPI breaking 3000 is an achievement after 3 years and 5 months, a positive sign that Korea's stock market is regaining vitality. The new government's stock market-friendly policies and foreign investors' large-scale capital inflow drove the rise, meaning trust recovery in Korea's economy and companies.
What's especially noteworthy is that this rise is based on policy expectations and fundamental improvements, not simple liquidity-driven gains. Specific policy changes like shareholder-friendly policies through corporate law reform, dividend tax reform, and supplementary budget organization are drawing investor expectations. Foreigners are also increasing investments by highly evaluating the possibility of resolving Korean stock undervaluation and competitiveness of core industries like semiconductors.
The unusual phenomenon of KOSPI rise without Samsung Electronics is also interpreted positively. This shows Korea's stock market is not overly dependent on specific companies but various industries and companies are growing in balance. Leading companies in each field like SK Hynix, LG Energy Solution, Kakao, and Naver are emerging as new growth drivers, achieving market diversification.
Whether Samsung Electronics breaks 60,000 won is still an important variable. If HBM-related technology verification and performance improvement happen, Samsung Electronics could lead KOSPI rise again. NVIDIA verification results scheduled for June 25 and second quarter earnings announcement in early July will be major points to watch.
What to be careful about going forward is that expectation-based rises must lead to actual results. We need to watch government policy execution and effectiveness, corporate performance improvements, and global economic environment changes. Especially, external variables like US economic conditions, relations with China, and interest rate policies can also have important impacts.
But overall, we can evaluate that Korea's stock market has prepared a foundation for new leap forward. KOSPI 3000 could be a new starting point, not an end.