South Korea has reportedly surpassed India to become the sixth-largest stock market in the world by market capitalisation, due to a significant increase in semiconductor companies associated with the global artificial intelligence (AI) boom.
This year, the entire market value of South Korean companies listed has increased by 86 per cent to USD 5 trillion.
On the other hand, according to exchange data, the market capitalization of Indian-listed companies has dropped to roughly USD 4.8 trillion, moving India down another level in the worldwide rankings.
Interestingly, this development has come a week after Taiwan’s stock market valuation surpassed that of India, primarily due to a rapid increase of Taiwan Semiconductor Manufacturing Company (TSMC), which is the largest chipmaker in the world. Semiconductor giants Samsung Electronics and SK Hynix, both of which have joined the USD 1-trillion valuation club due to the robust demand for AI infrastructure worldwide, have spearheaded the rise in Korea’s stock market.
The benchmark Kospi index in South Korea has reached all-time highs as a result of the two IT giants’ impressive performance, which has also significantly boosted investor enthusiasm about the country’s stock market.
Furthermore, South Korea has surpassed several major markets this year, including those in Canada, Germany, the United Kingdom, and France. Experts see the change as an indication of the growing interest of international investors in AI-related industries, especially in Asia’s semiconductor hubs like Taiwan and South Korea.
AI-related investments have helped South Korea and Taiwan, while Indian stocks have suffered due to selling pressure by foreign investors, a declining rupee, rising energy costs, and slower corporate earnings growth.
As per reports, global funds have sold over USD 26 billion worth of Indian stock this year. Benchmark Indian stock indices are on track for their first yearly dip in almost ten years, having dropped by almost 11 percent in 2026.
