Era of KRW 100 trillion in investor deposits begins… KOSPI breaks above 5,100

The KOSPI index topped the 5,100 level for the first time ever. Amid an unprecedented rally, the market capitalization of the main board surpassed Germany’s. The KOSDAQ, also on a steep run, succeeded in settling above 1,100. As the rally continues, investor deposits surpassed KRW 100 trillion for the first time.

On the 28th, the KOSPI rose 1.69% to close at 5,170.81. Just one day after clearing 5,000 on a closing basis, it broke through 5,100. Buying interest flowed in after U.S. President Donald Trump, a day after announcing plans to raise tariffs on Korean products, said, "We will work out a solution with Korea."

Semiconductor stocks led the index higher. SK hynix surged 5.13% to close at KRW 841,000. The move came after reports that Nvidia allocated about two-thirds of this year’s HBM4 (high-bandwidth memory) volume—set to be used for next-generation AI platforms such as Vera Rubin—to SK hynix. The brokerage community also produced a report setting a target price of KRW 1.5 million. Samsung Electronics rose 1.82% to close at KRW 162,400, securing a foothold above KRW 160,000.

With the rally continuing, the market capitalization of South Korea’s stock market surpassed Germany, Europe’s largest economy. According to Bloomberg, as of the 28th, the main-board market cap stood at about $3.25 trillion, overtaking Germany’s roughly $3.22 trillion. As a result, South Korea’s equity market rose to 10th in the world by market cap, following Taiwan.

The KOSDAQ has also been surging day after day. It jumped 4.70% to close at 1,133.52, breaking above 1,100. It has risen for five consecutive sessions. Over that period, it has gained 19.16%. Retail investors have been driving the index higher by aggressively accumulating ETFs tracking the KOSDAQ. On the day, net purchases of 'KODEX KOSDAQ150' and 'KODEX KOSDAQ150 Leverage' by individuals totaled KRW 1.009 trillion.

Second-battery shares surged on expectations that they could begin supplying batteries to humanoids in earnest. EcoPro climbed 21.82% to close at KRW 168,200.

As the domestic market’s rally extends, investor deposits—often seen as sidelined funds waiting to enter the stock market—also exceeded KRW 100 trillion. This suggests a growing number of individuals are stockpiling cash to deploy into the market. According to the Korea Financial Investment Association, investor deposits stood at KRW 100.2826 trillion as of the 27th. They increased by more than KRW 2.7 trillion in a single day from KRW 97.5405 trillion the previous day. Since the start of the year, they have risen by KRW 12.4535 trillion.

Reporter Shim Sung-mi smshim@hankyung.com