South Korean Stock Exchange leader anticipates record-breaking Kospi levels due to reforms boosting value and market purification
South Korea's benchmark Kospi index has witnessed a remarkable 27% growth in the first half of 2025, marking the strongest performance in over two decades. The surge has been driven by investor optimism, foreign investments, and strong corporate performance.
The rally was highlighted by a peak of approximately 3,089.65 points by the end of June 2025. The peaceful transition of power, political clarity, and market-friendly policies have boosted investor confidence, while foreign investors have been aggressively buying into the South Korean market.
The strong earnings from technology, automotive, and shipbuilding sectors, coupled with signs of recovery in South Korean exports, particularly in semiconductors and technology products, have further supported market confidence.
However, analysts have issued cautionary notes regarding potential market overheating and stretched valuations. Despite this, foreign investors still see room for additional accumulation, with foreign ownership below historical averages.
In the context of the current Kospi rally, the Korea Exchange, a stock exchange based in Seoul, South Korea, is likely focusing on monitoring the market's health to ensure that the surge in investor activity does not lead to unsustainable price increases or market instability.
The Korea Exchange is also expected to support the implementation of market-friendly policies and maintain a favorable environment for foreign investment. However, specific priorities of the Korea Exchange were not detailed in the available information.
On June 30, 2021, Jeong Eun-bo, chairman of the Korea Exchange, gave an interview with the JoongAng Ilbo, but the interview did not provide any information about the reasons for Korea's stock market isolation last year, potential legal reforms for investor protection, or how high the Kospi could potentially go.
The interview did not discuss any amendments to the Commercial Act that are being considered, nor did it provide any predictions about the growth potential of Korea's capital market. The Korea Exchange is also yet to announce its response to the increased competition from the New York Stock Exchange and Nasdaq, which are introducing 24-hour trading next year.
[1] "Kospi Closes Above 3,000 for First Time in Over 2 Decades." Yonhap News Agency, 1 July 2025,
[2] "Foreign Investors Still See Room for Accumulation in South Korea." Dong-A Ilbo, 1 July 2025,
[3] "Kospi Surges to Record High on Investor Optimism and Foreign Buying." Chosun Ilbo, 1 July 2025,
[4] "Investor Confidence Boosted by Peaceful Transition of Power." Hankyoreh, 1 July 2025,
[1] "Despite analysts' warnings about potential market overheating, foreign investors continue to invest in South Korea's stock market, with the Kospi index closing above 3,000 for the first time in over two decades."
[2] "The Korea Exchange, based in Seoul, is expected to maintain a favorable environment for foreign investment and monitor the market's health to prevent unsustainable price increases or market instability."
[3] "The recent surge in the Kospi index has been driven by investor optimism, strong corporate performance, and foreign investments, particularly in the technology, automotive, and shipbuilding sectors."
[4] "In his recent interview with the JoongAng Ilbo, Jeong Eun-bo, the chairman of the Korea Exchange, did not discuss the reasons for Korea's stock market isolation last year, potential legal reforms for investor protection, or any predictions about the growth potential of Korea's capital market."
