South Korea's stock market hits a 10-month high, this time it's no longer a chip stock show

**Source**: Wall Street Insights

The rally in the South Korean stock market is spreading to an increasing number of industries, no longer relying on tech giants like Samsung Electronics.

On May 30, the South Korean KOSPI index hit a new high on Thursday (May 29) since August last year. On that day, 91 constituent stocks reached a 52 - week high, the highest number in a single day since May 2021.

Notably, the Kospi index has risen by more than 5% this month, and has increased by nearly 20% from the low point it reached since early April, edging close to the territory of a technical bull market. Year - to - date, the South Korean Kospi index has gained more than 12%.

Analysis indicates that this phenomenon clearly shows that investors in the South Korean market are gradually moving away from relying on a few tech giants and instead are allocating their investments across a broader range of industry opportunities.

For investors who are used to the pattern of "when Samsung rises, South Korean stocks rise", the emergence of a diversified rally in the South Korean stock market may signal that a market that has long relied on a single technological pole is seeking new growth engines.

Samsung Electronics' Weight Declines as South Korean Stock Market Booms Across - the - Board

Historically, as South Korea's most valuable listed company, Samsung Electronics has been the main driver of the performance of the South Korean stock market.

However, data shows that Samsung Electronics' weight in the Kospi index has dropped from over 20% a year ago to around 16%, reflecting a healthy transformation in the market structure.

While the Kospi index has risen by more than 5% this month, Samsung Electronics' share price has only increased by about 2%, further confirming the trend of diversified market drivers. This expansion of market breadth is generally regarded as an important indicator of a healthy bull market.

Notably, as the chip giant's dominance wavers, the South Korean stock market is booming across - the - board. Stocks that reached a 52 - week high on Thursday covered a variety of industries:

Holding companies (Hanwha Group and Doosan Group), securities firms (Mirae Asset Daewoo), retailers (Hyundai Department Store), defense enterprises (Hyundai Rotem), and nuclear - power - related enterprises (Hyundai Engineering & Construction).

It is reported that the significant rallies in holding companies, securities firms, and consumer stocks mainly stem from the market's optimistic expectations of more corporate reforms and new stimulus measures to be rolled out after the presidential election on June 3.

Meanwhile, South Korean defense and nuclear - power - related stocks have benefited from investors' bullish sentiment towards the structural growth in global arms and energy demand.

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