Kospi hits record highs even as valuation falls below 2008 crisis
Why it matters: The benchmark trades at just 6.4 times forward earnings after an 80% rally, leaving investors split on how long the AI memory boom can last.
South Korea’s stock market has climbed to record highs while getting cheaper by a key valuation measure, an unusual mix driven by booming chip earnings. The Kospi is up about 80% this year, but forward earnings estimates have risen even faster, pushing the benchmark down to 6.4 times projected profits, below levels seen during the 2008 financial crisis. Samsung Electronics and SK Hynix, lifted by soaring memory-chip prices as tech companies build AI infrastructure, have led the surge. Recent selling tied to fresh doubts about the AI trade compressed valuations further. Analysts say the setup could signal either a buying opportunity or investor skepticism that the memory upcycle will endure.