Kospi Enters Bull Market with 29.5% Surge on AI Chip Demand

What happened

South Korea's Kospi index rose 29.5% from its July 30 trough to close at 6,977.94 on August 14, crossing the 20% bull-market threshold. On July 31, foreign investors made a record net purchase of about 7.2 trillion won in a day. SK hynix reported record Q1 2026 revenue of 52.5763 trillion won and net profit of 40.3459 trillion won, driven by AI chip demand. Foreign net purchases totaled roughly $1.9 billion since July 30.

Why it matters

The rally highlights South Korea's central role in global AI infrastructure. Samsung Electronics and SK hynix dominate the Kospi, making their earnings a real-time gauge for memory chip pricing and AI demand durability. Record foreign buying signals institutional re-engagement, with implications for global tech supply chains and Asian equities. However, high concentration means any chipmaker disappointment could quickly reverse gains.