Stock market, Kospi, records third consecutive session of gains under the new administration's investment encouragement
In the heart of Seoul, on June 5, 2025, the Kospi soared to an astounding 2,831.11, shattering the year's high records – a day after the inauguration of President Lee Jae-myung. The ambiance bustled outside a Hana Bank branch, with a worker securing his spot in this remarkable economic tide.
Why did this monumental shift occur? Let's dig a little deeper.
A Leap of Faith
Investors embraced the new prospects of President Lee's administration, anchored by commitments to economic recovery and market stability. The market reveled in anticipation, tickled by the promise of impactful policies tailored to revive Korea's economy.
Riding the Wave
Foreign investors led the charge, aggressively scooping up over $735 million in Kospi shares the day prior, continuing their investment spree with another $730 million on June 5. Institutional investors joined the dance, locking arms with foreign investors, purchasing a whopping $280 million. Even amidst retail investor profit-taking worth a substantial $1.2 billion, the overall market momentum stayed strong.
Grabbing the Reins
The shift in political leadership brought a sense of security, with the previous government's impeachment and martial law declarations in late 2024 now a distant memory. The progressive party holding the National Assembly majority instilled confidence in the new administration's ability to implement its vision and steer the economy forward.
So, there you have it. The Kospi's record ascent wasn't a coincidence. An intricate web of factors, including expectations of pro-growth policies, investor confidence, political stability, and legislative support, combined to paint this picture of economic prosperity. With President Lee at the helm, what new heights could the market reach? Only time will tell.
- The investors showed a leap of faith in President Lee's administration, encouraged by the commitments to economic recovery and market stability.
- Foreign investors led the charge, investing aggressively in Kospi shares, spending over $1.4 billion within two days, with institutional investors joining the trend.
- The shift in political leadership brought a sense of security, as the previous government's impeachment and martial law declarations were now a distant memory, and the progressive party's majority in the National Assembly instilled confidence in the new administration's ability to steer the economy forward.
- The record ascent of the Kospi wasn't a mere coincidence, but the result of an intricate web of factors, including expectations of pro-growth policies, investor confidence, political stability, and legislative support.
