The South Korean stock market has soared 100% so far this year, surpassing the historic rallies seen just before the dot-com bubble burst and during the country's late-1980s industrial boom.
Driven by sharp gains in SK Hynix and Samsung Electronics, the Kospi index has been setting new records, climbing from 5,000 points to 8,000 points in just a few months. The index jumped as much as 5.1% on Wednesday.
With the year not yet half over, the Kospi's performance is already comparable to the Nasdaq 100's 102% surge in 1999, which occurred on the eve of the dot-com bubble's collapse.
However, few market observers are sounding alarms about the South Korean market. They believe a structural shift in global demand for memory chips—from cyclical fluctuations to a more sustained growth trend—is underpinning the rally.
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