Korea's stock market is missing 'long money'

Korea's stock market, the KOSPI, has shown remarkable growth recently, defying initial skepticism from investors. When President Lee Jae Myung assumed office last June with the ambitious goal of raising the KOSPI from 2,000 to 5,000, many were doubtful about its prospects. According to the Korea Corporate Governance Forum, a 100 million won investment in the U.S. stock market a decade ago would have grown to 340 million won by 2024, compared to just 160 million won for an equivalent investment in Korea.

The market's lackluster performance had earned it the nickname "Korea discount," with former APG Asset Management managing director Park Yoo-kyung noting that it offered investors little reward.

However, the tide began to turn with the advent of the artificial intelligence (AI) boom, particularly driven by Korea's two semiconductor giants. The KOSPI experienced a staggering 75.89 percent surge in 2025, outperforming major markets worldwide. This unprecedented growth marked the strongest performance among major stock exchanges, signaling a shift in sentiment among global investors.

Lee Jae Myung's efforts to improve corporate governance and shareholder returns, aimed at resolving the long-standing "Korea discount," have finally begun to pay off.