Kospi Soars 45% in 2026: South Korea Leads Global AI Market Rally

• South Korea's Kospi index has surged 45 percent in 2026, crossing the 6,000 mark for the first time, making it the biggest winner in the global AI shakeup.
• The rally is driven by heavy institutional interest, as South Korea is central to the advanced memory-chip supply chain, a key pillar of the AI ecosystem.
• AI-linked sectors like semiconductors, defense, and advanced manufacturing, along with government efforts to improve corporate governance, are fueling Kospi's rise.
• Nomura projects Kospi to reach 8,000 in H1 2026, driven by strong earnings in the memory-chip sector, while JPMorgan raised its targets to 6,000 and 7,500.
• Despite the rally, foreign investors have been net sellers, booking profits and rebalancing portfolios amid expanded valuations and global bond yields.