South Korea overtakes India as world’s sixth-largest stock market

South Korea’s equity market has overtaken India’s as the world’s sixth largest, driven by a relentless surge in chip heavyweights powering the global artificial intelligence buildout.

The total market capitalization of Korea-listed companies has soared 86% this year to $5 trillion, while India’s has declined to $4.8 trillion, data compiled by Bloomberg show.

Samsung Electronics Co. and SK Hynix Inc., newly minted members of the $1 trillion valuation club, have powered Korea’s equity surge, lifting the Kospi’s 2026 gains to more than 100% through their dominance in AI memory chips. Korea has vaulted past Canada, Germany, the UK, and France this year.

“Closing in on India is a remarkable milestone for a market that, not long ago, was setting Kospi 5,000 as an ambitious target,” said Ross McGarry, senior investment analyst at Asset Value Investors. “This year’s rally, though, has been heavily carried by the memory cycle — Samsung and SK Hynix have done the heavy lifting. The real test is whether Korea can sustain this re-rating through genuine corporate governance reform.”

Agencies

India, meanwhile, has been dragged lower by a weakening rupee, record foreign outflows and a dearth of companies directly linked to the AI infrastructure.

While Korea has overtaken in market value, India’s $4.15 trillion economy — among the fastest growing in the world — still trumps Seoul’s $1.93 trillion gross domestic product, according to International Monetary Fund estimates.

Bloomberg

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