South Korean Stocks Double on AI Boom, Fulfilling President's Promise

South Korea's stock market, the Kospi, is experiencing an extraordinary boom, having more than doubled since the beginning of the year. This remarkable performance has captured global attention, with news outlets highlighting the index's unprecedented rise. While global markets face challenges, including an oil crisis exacerbated by the war in Iran, South Korea's stock exchange is soaring.

The primary driver behind this surge is the booming performance of companies deeply invested in Artificial Intelligence (AI). Chip manufacturers SK Hynix and Samsung Electronics, in particular, have seen their stock values multiply significantly over the past year. Their success is directly linked to the global expansion of data centers, which rely heavily on the chips these South Korean firms produce.

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South Korea will become the AI workbench of the world!

President Lee Jae-myung's administration is attributing this market success to a deliberate national AI strategy. The government emphasizes that the promise made during Lee's election campaign, to double the Kospi within his five-year term, has already been fulfilled. This narrative positions the boom not as a coincidence but as the outcome of a well-executed plan, highlighted by the government's "M.AX" initiative (Manufacturing Artificial Intelligence Transformation).

Launched in late 2025, the "M.AX" strategy aims to foster a revolution in AI-driven manufacturing. The government has announced a one-trillion-won fund (approximately $665 million) over the next three years to specifically support the development of AI-based factories across various sectors, from renewable energy and medicine to heavy industry. This initiative, bolstered by participation from commercial banks, aims to leverage the fund to twice its volume.

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The state will actively promote 'a revolution' under the name 'M.AX' or 'Manufacturing Artificial Intelligence Transformation'.