Forget K-Pop, the Kospi is South Korea's latest hit

KPOP DEMON HUNTERS wasn’t the only surprise summer smash set in Seoul.Since April’s so-called Liberation Day announcement, the South Korean stock market has been killing it. Whetherthat continues will depend on howmuch followthrough there is to President Lee Jae Myung’s drive to improve corporate governance and end the dreaded “Korea Discount”.

- JULIANA LIU

To be sure, those efforts aren’t the sole reason why the Kospi is currently the best performeramong major global equity indexes. Lee’s June election in itself marked the end of months of political uncertainty after his predecessor was removed from office following a short-lived martial law attempt.

The US Federal Reserve and Asian central banks have kicked offa rate-cutting cycle, which makes stocks more attractive. Tech firms Samsung Electronics and SK Hynix have benefitted from the AI boom. Still, there is no doubt that Lee’s signature campaign promise to take the Kospi beyond the 5,000 level is the major factorbehind the record-setting rally. With his left-leaning Democratic Party controlling the legislature, Lee has movedastonishingly quickly. Just a month after he took office, lawmakers overcame enormous resistance from the family-run conglomerates that dominate Korea Inc to approve long-anticipated changes to the commercial code.