KOSPI is the primary index of the Korea Exchange (KRX), tracking all listed companies on the main board.

Key Facts

  • Components: ~800+ companies (all main board)
  • Methodology: Market cap weighted
  • Dominated by: Samsung Electronics (~20% weight)

Samsung Effect

Samsung Electronics alone accounts for roughly 20% of KOSPI. When Samsung moves, the entire Korean market follows. SK Hynix adds another ~5%, making semiconductors ~25% of the index.

Korea Discount

Korean stocks historically trade at lower valuations than peers (KOSPI P/E ~10 vs global average ~15-18). Reasons include:

  • Chaebol (conglomerate) governance concerns
  • Geopolitical risk (North Korea)
  • Currency volatility

The Korean government has launched 'Value-Up' programs to address this discount.