Benchmark KOSPI breaks 3,000 for first time in 42 months

South Korea's benchmark KOSPI extended its winning streak on Friday to a fifth day, breaking the 3,000-point mark, driven by the upward trend of increased liquidity in the global financial markets.

Our correspondent Park Jun-han reports.

South Korea's benchmark KOSPI surpassed the 3-thousand points mark on Friday for the first time since December 2021.

Closing at 3-thousand-21-point-84, the index jumped 1.48% from Thursday's market close.

The last time the KOSPI closed above the 3-thousand mark was on December 28th, 2021, when it ended the day at 3-thousand-20-point-24 points.

The KOSPI recorded its highest-ever close on July 6th, 2021, when it climbed past the 3-thousand-3-hundred level.

However, since December 28th of that year, the index has failed to close above 3,000, instead fluctuating anywhere between 2-thousand-1-hundred-55-points to 2-thousand-9-hundred-89.

Korean stocks have risen over 30% since April's yearly low.

Domestically, investor sentiment has improved following the resolution of uncertainties stemming from last December's martial law declaration, which had previously weakened market confidence.

"South Korea's shipbuilding and defense stocks rose amid policies associated with the Trump administration.

More recently, since the launch of the Lee Jae-myung administration, the market has seen selective gains in AI and securities firms driven stocks, particularly those benefiting from shareholder return policies."

With the Lee Jae-myung administration now in office, its stock market-friendly policies are fueling momentum to revitalize the market.

President Lee, while visiting the southeastern industrial city of Ulsan on Friday morning, commented on South Korea's recent stock market gains.

Globally, although negotiations are still underway, a 90-day suspension of U.S. reciprocal tariffs and the de-escalation of U.S.-China trade tensions following high-level talks boosted the rise of Korean stocks.

Yet, since the market's index growth was driven by expectations, further momentum beyond the 3,000 mark may require solid corporate earnings and clear signs of an economic recovery.

"I believe stock market-friendly policies should be implemented more swiftly.

Investments in areas like AI also need to proceed smoothly to support the growth of related domestic industries.

In addition, improvements in external conditions must be backed by a strong export performance and a broader economic recovery at home."

After the KOSPI surged past 3,000 for the first time in years, investors are asking: Is this a true rebound — or a brief surge?

Park Jun-han, Arirang News.