South Korea’s benchmark Kospi touched the 8,000 level on Friday, just seven trading sessions after breaking 7,000. The rapid climb follows a year‑long surge from 5,000, a pace that dwarfs the 18‑year climb from 1,000 to 2,000 in the 1990s. Investors credit the rally to heavy demand for AI‑related hardware, ahead of the earnings season.

Memory‑chip leaders Samsung Electronics and SK Hynix propelled the index higher, benefitting from the AI infrastructure boom. Over the past twelve months the Kospi has nearly tripled, prompting skeptics to question whether earnings growth can sustain such valuation. Foreign investors have been net sellers this week, adding pressure despite the market’s forward‑earnings multiple of 8.6, raising doubts on timing overall.

Fidelity International’s Ian Samson argues the rally reflects genuine cash flow from AI giants rather than a bubble, noting that companies are pouring free cash into the “arms race” for compute power. With valuations still modest by global standards, the Kospi appears positioned for upside, but sustained investor confidence will hinge on corporate earnings keeping pace with AI‑driven spending, for investors across sectors in the region.