Korea Capital Market Institute

Korea’s Achievement of KOSPI 4,000 and Its Implications [Senior Research Fellow] Kang, Sohyun In the second half of 2025, the Korean stock market surged at an exceptionally rapid pace, with the KOSPI breaking through the 4,000 mark. This development is being viewed as both a symbolic and substantive milestone, suggesting that the domestic market—long burdened by the so-called “Korea discount”—has entered a phase of structural transformation. However, it is also evident ... Assessing the Drivers of Recent Won Depreciation and Its Macroeconomic Implications [Senior Research Fellow] Kang, Hyunju The recent rise in the KRW/USD exchange rate is assessed to reflect a combination of structural factors—such as increased overseas securities investment driven by ageing and slower growth—and cyclical factors, including co-movement with the Japanese yen and the AI investment boom. Nevertheless, external soundness appears broadly solid, given the expansion of net foreign assets,...