Propelled by a remarkable surge in tech stocks amid the global artificial intelligence and robotics boom, South Korea’s stock market valuation soared to US$3.25 trillion as of Wednesday. This achievement places it ahead of Germany’s market, valued at US$3.22 trillion, and secures South Korea’s position as the 10th-largest stock market in the world. Since the start of the year, South Korea’s Composite Stock Price Index has climbed by 23%, in stark contrast to Germany’s DAX index, which has seen a modest increase of just 1.7%. Nevertheless, a considerable disparity exists in the economic scale of the two nations. In 2024, South Korea’s GDP is projected to rank 12th globally, while Germany holds the third spot. The divergence between South Korea’s stock market performance and its real economy underscores a structural contradiction: the robust profits of export-oriented enterprises juxtaposed against sluggish domestic demand.
