SEOUL, February 01 (AJP) -South Korea’s benchmark KOSPI delivered one of the most explosive monthly rallies in the history of the local stock market in January, with virtually every major indicator posting record or near-record figures.
According to the Korea Exchange (KRX), the KOSPI closed January at 5,224.36 last Friday, up 1,010.19 points from the previous month-end. The index gained 23.97 percent over the month, marking its strongest monthly performance since October 1998.
Since the early 2000s, the KOSPI has recorded a monthly gain exceeding 20 percent only twice, including this January.
The rally was accompanied by extreme intramonth volatility. The index climbed as high as 5,321.68 during the month, repeatedly setting new highs, while the January low stood at 4,216.68 — a swing of more than 1,100 points within a single month.
The sharp rise translated directly into a surge in market capitalization. Total KOSPI market value stretched to 4,319 trillion won at the end of January from about 3,478 trillion won at the end of last year, adding roughly 840 trillion won in just one month.
Heavy liquidity inflows underscored the market’s momentum. January trading turnover on the KOSPI reached 568 trillion won, the highest monthly total on record, nearly double the 302 trillion won recorded in the previous month. Trading volume also jumped sharply to 11.55 billion shares from 8.4 billion shares, signaling a clear increase in investor participation.
Investor interest intensified further as sidelines cash flowed back into equities. As of Jan. 29, investor deposits stood at 103.7 trillion won, having surpassed the 100 trillion-won mark earlier in the week. Margin trading also hit an all-time high, with outstanding credit loans exceeding 30 trillion won for the first time.
The number of active stock trading accounts reached 100.2 million as of Jan. 29, up about 1.73 million from the end of last year. Active accounts refer to those holding at least 100,000 won in assets and having traded at least once in the past six months. Given South Korea’s population of roughly 50 million, the figure implies that each citizen holds, on average, more than two active trading accounts.
Despite mounting concerns over valuation and leverage, securities firms remain broadly constructive on the medium- to long-term outlook, citing earnings improvement and favorable liquidity conditions.
“Leadership centered on artificial intelligence-related stocks is likely to persist,” said Na Jung-hwan, an analyst at NH Investment and Securities Co.. “From a return enhancement perspective, gradually increasing exposure to cyclical sectors as economic indicators improve remains a valid strategy.”
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