Global demand for artificial intelligence and high-bandwidth memory (HBM) chips triggered a massive rally in South Korea’s Kospi index. Semiconductor giants Samsung Electronics and SK Hynix powered nearly the entire surge. Both companies now hold combined valuations exceeding $1 trillion.
These two chipmakers represent a dominant portion of the Kospi’s total market capitalization. This heavy reliance on a single cyclical industry creates significant concentration risk for the national market.
Heightened exposure to AI spending shifts and semiconductor volatility led to extreme market fluctuations. Trading recently halted multiple times as price swings triggered exchange circuit breakers.