South Korea's stock market is experiencing a remarkable surge, attracting a new generation of novice investors. This boom has been fueled by a combination of factors, including a global shortage of memory chips, the rise of AI, and a series of reforms aimed at improving corporate governance and protecting minority shareholders. The Kospi index has nearly doubled in value, making it the best-performing major index worldwide. This surge has led to a significant increase in the number of South Koreans who own stocks, with the number of active trading accounts rising to 105.22 million as of May. The market's performance has also been driven by the success of household names like Samsung and Hyundai, which have seen their stock prices soar. However, the market's volatility has raised concerns about its sustainability, with the Kospi plunging nearly 9 percent on Monday, triggering the exchange's circuit breaker for the second time this year. Despite this, market watchers remain cautiously optimistic, noting that the rally has been concentrated in a handful of mostly tech-related firms, while hundreds of profitable companies in other sectors have been overlooked. The biggest danger, they say, is that US tech giants fuelling chip demand could rein in their spending faster than expected, causing a decline in the market. Nevertheless, the surge in the stock market has created a new generation of investors, with everyday South Koreans like Kim Ha-young, who has seen her investments double in value, hoping to grow her investments slowly and steadily for the long term.
