South Korea’s Kospi tops 7,000 as Samsung surges on AI rally

South Korea’s stock market has turned one of Asia’s strongest rallies into a fresh test of staying power. The Kospi climbed above 7,000 for the first time on Tuesday, extending a run of more than 70% since the start of the year and pushing the benchmark to a record high.

Samsung Electronics powered much of the move. Its shares jumped more than 15% in the session, lifting the company’s market value above $1 trillion and making it only the second Asian company to reach that level after Taiwan Semiconductor Manufacturing Co. FactSet data cited by CNBC showed Samsung had first crossed $1 trillion on Feb. 26, underscoring how quickly the valuation has become a recurring feature of the market’s AI-fueled ascent.

The broader rally was not confined to Samsung. SK Hynix rose more than 10% as an AI-powered surge in semiconductor shares continued to dominate trading, according to Reuters. The latest burst built on a 5.1% gain on Monday, before the market closed Tuesday for a public holiday. Reuters-linked reporting said the Kospi has risen about 74% year to date after a 76% jump in 2025, the index’s best annual performance since 1999.

That backdrop has turned South Korea into a referendum on whether a long-running valuation discount is finally disappearing. President Lee Jae Myung, who took office in June 2025, has pressed stock-market reforms aimed at addressing the so-called Korea discount, including governance changes and proposals such as banning duplicate listings by holding companies and subsidiaries. The market’s powerful response suggests investors are giving those efforts at least some credit.

Still, the durability of the move will depend on more than headline index levels. U.S. and global investors will be watching whether earnings quality catches up with share prices, whether export demand for chips remains strong, and whether the rally can widen beyond Samsung-led exuberance. CNBC also cited a Bloomberg report saying Apple had held exploratory talks with Samsung and Intel to make chips for Apple devices in the United States, a sign that the semiconductor race could keep evolving beyond the current TSMC-centered model.

For now, the message from Seoul is clear: AI enthusiasm, reform hopes and heavyweight chip gains can still move markets at extraordinary speed. The harder question is whether South Korea’s 7,000-level Kospi marks a durable re-rating or another momentum trade concentrated in a few giant names.