KOSPI Breaks 5,000 Mark as Government Announces New Market‑Boosting Reforms
Updated (4 articles)
KOSPI Surpasses 5,000 Points Intraday The Korea Composite Stock Price Index opened about 2% higher and briefly crossed the 5,000‑point threshold at 9:01 a.m. local time, marking the first intraday breach since it topped 4,000 on Oct. 27 less than three months earlier[2][1]. The surge extended a 12‑session winning streak that began the year, underscoring sustained domestic buying pressure[2].
Record Closing Near 5,000 Preceded Recent Rally Three days earlier, the KOSPI closed at a record 4,904.66, up 1.32% and setting a new high above 4,900[3]. An intraday peak of 4,917.37 followed a volatile start linked to U.S. tariff threats[3]. The close was part of a 12‑session rally that has lifted the index more than 16% since the start of the year and doubled its level from the previous year’s start[3].
Government Commits to Market Revitalization After Milestone senior finance‑ministry official announced that the administration will push reforms to “revitalize, normalize and modernize” the stock market throughout the year[1]. The policy agenda aims to eliminate the long‑standing “Korea discount” and create a “Korea premium” by attracting investment and expanding incentives[1]. These commitments align with President Lee Jae Myung’s campaign promise to drive the KOSPI to the 5,000 mark and implement sweeping capital‑market reforms[1].
External Factors Influence Korean Market Momentum U.S. equity markets rose after President Trump withdrew a plan to impose Greenland‑related tariffs on eight European nations, providing a positive backdrop for Asian investors[2]. Earlier volatility in the Korean market had been triggered by Trump’s threat of new tariffs on Europe, which briefly pushed the KOSPI lower before the rebound[3]. The interplay of these external policy signals with domestic momentum helped sustain the index’s advance toward the 5,000 milestone[2].
Sources (3 articles)
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[1]
Yonhap: Gov't pledges efforts to further boost KOSPI after topping 5,000 mark: Details the post‑milestone reform agenda, emphasizing policy incentives, the goal of converting the Korea discount into a premium, and the senior official’s pledge to continue market modernization.
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[2]
Yonhap: KOSPI tops 5,000 intraday as index hits new milestone: Reports the 2% opening surge, the exact time of the 5,000 breach, the 12‑session rally, and links the move to recent U.S. stock gains after Trump’s tariff retreat, highlighting rapid progress from the 4,000 level.
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[3]
Yonhap: KOSPI closes at record 4,904.66 with intraday high of 4,917.37: Records the record close and intraday high, notes volatility from Trump’s tariff threats, and situates the performance within a 12‑session rally that has more than doubled the index since the previous year.
Timeline
Oct 27, 2025 – The KOSPI breaches the 4,000‑point barrier for the first time since 1983, marking a historic high that caps a 70 % surge from the start of the year and outpaces the G20 peers, S&P 500 and Nasdaq. The rally is driven by AI optimism, rate cuts and early reform momentum, setting the stage for further gains in 2026. [4]
Dec 25, 2025 – Analysts note that the 2025 rally “surged more than 70 % from the start of the year” and that “AI boom, rate cuts and reforms underpin the rally,” while President Lee Jae Myung pledges to lift the KOSPI above 5,000 by mandating treasury‑stock cancellations within a year. Over 20 listed firms, led by Samsung and SK Hynix, post record valuations, and Nomura projects the index could reach around 5,000 next year. [4]
Jan 19, 2026 – The KOSPI closes at a record 4,904.66, up 1.32 % and the first close above 4,900, after hitting an intraday high of 4,917.37 despite early losses from renewed trade‑tension headlines. The move extends a 12‑session rally that has more than doubled the index since the start of 2025, underscoring the market’s resilience. [3]
Jan 22, 2026 – At 9:01 a.m. local time, the KOSPI briefly tops the 5,000‑point level, a milestone reached less than three months after crossing 4,000. The 2 % opening surge continues a 12‑session winning streak that reflects sustained domestic momentum and buoyant investor sentiment. [2]
Jan 22, 2026 – A senior finance‑ministry official declares, “The administration will continue to push reforms to strengthen the market this year,” and adds that the goal is “to overcome the Korea discount and achieve what could be called a Korea premium as reforms take hold.” The government pledges to revitalize, normalize and modernize the stock market, reinforcing President Lee’s campaign promise to push the KOSPI past 5,000. [1]