On the 27th, the KOSPI index broke through the 6,600 level, setting a fresh all-time high. The combined market capitalization of the domestic market (KOSPI·KOSDAQ) also surpassed 6,000 trillion won for the first time. Rising expectations for semiconductor earnings and a calming of tensions between the United States and Iran contributed. Brokerages now see a break above the 7,000 level as imminent, with some even pointing to 8,000. However, others note that earnings optimism has already been priced in and that geopolitical uncertainty stemming from the war involving Iran makes a near-term break above 7,000 unlikely.

The KOSPI closed at 6,615.03, up 139.40 points (2.15%) from the previous session, after climbing as high as 6,657.22 during the day.

On the main board, foreigners posted a net purchase of 888.0 billion won and institutions 1.102 trillion won, lifting the index. Individuals recorded a net sale of 1.974 trillion won to lock in gains.

SK Hynix jumped 5.73% to finish at 1,292,000 won, and touched 1,317,000 won intraday to set a new 52-week high. Samsung Electronics rose 2.28% to close at 224,500 won.

The KOSDAQ was also strong. Having reached its highest level in about 25 years and 8 months on the 24th, the KOSDAQ added 22.34 points (1.86%) to end at 1,226.18, marking another all-time high.

As a result, the combined market capitalization of the KOSPI and KOSDAQ came to 6,101 trillion 994 billion won, breaching the 6,000 trillion won mark for the first time. Considering that the domestic market cap was only in the 2,200 trillion won range in April last year, the market has grown roughly 2.7 times in just over a year.

Korean equities market capitalization surpassed 3,000 trillion won in July last year, then broke through 4,000 trillion won in January and 5,000 trillion won in February this year, showing an accelerating pace.

The day’s gains are seen as the result of both domestic and external factors.

Externally, an easing of tensions in the Middle East is cited. Although ceasefire talks between the United States and Iran have repeatedly broken down and resumed, expectations are growing that the two sides will eventually agree to end the conflict.

On top of this, optimism for strong results led by semiconductor companies is supporting the market. This week, earnings from United States big tech firms including Microsoft, Apple, and Alphabet are due. Over the weekend, United States tech shares such as Intel and Nvidia rose on improved results.

Asian markets advanced in tandem. Japan’s Nikkei 225 closed at 60,537.36, up 821.18 points (1.38%) from the previous session, marking the first time the Nikkei has ended above 60,000. Taiwan’s Weighted Index also finished at 39,616.63, up 684.23 points (1.76%), a record high.

Brokerages say that if this uptrend continues, a KOSPI break above 7,000 is possible. Daishin Securities and KB Securities set targets at 7,500, while Japan’s Nomura Securities raised its view to 8,000 and J.P. Morgan to 8,500.

Seo Sang-young, a managing director at Mirae Asset Securities, said, “The current KOSPI 12-month forward price-to-earnings ratio (PER) is 8.6 times, lower than the historical average of 10.8 times, so by the numbers alone even 10,000 rather than 7,000 could be possible,” while adding, “Unless semiconductor prices keep rising, gasoline prices in the United States fall, and liquidity supply continues, numbers are just numbers.”

On the other hand, some argue that ‘7000pi’ is premature. The view is that gains may be limited because expectations for major corporate results have already been reflected in domestic shares. Han Ji-young, a researcher at Kiwoom Securities, said, “As most leading sectors such as semiconductors, defense, construction, and energy storage systems (ESS) staged a sharp rally in April, the market may already have exhausted first-quarter earnings expectations.”