The total market capitalisation of Korea-listed companies has soared 86% this year to US$5 trillion, while India’s has declined to US$4.8 trillion, data compiled by Bloomberg show.

Samsung Electronics Co and SK Hynix Inc, newly minted members of the US$1 trillion valuation club, have powered Korea’s equity surge, lifting the Kospi’s 2026 gains to more than 100% through their dominance in AI memory chips. Korea has vaulted past Canada, Germany, the UK, and France this year.

“Closing in on India is a remarkable milestone for a market that, not long ago, was setting Kospi 5,000 as an ambitious target,” said Ross McGarry, senior investment analyst at Asset Value Investors.

“This year’s rally, though, has been heavily carried by the memory cycle – Samsung and SK Hynix have done the heavy lifting. The real test is whether Korea can sustain this re-rating through genuine corporate governance reform.”

India, meanwhile, has been dragged lower by a weakening rupee, record foreign outflows and a dearth of companies directly linked to the AI infrastructure.

While Korea has overtaken in market value, India’s US$4.15 trillion economy – among the fastest growing in the world – still trumps Seoul’s US$1.93 trillion gross domestic product, according to International Monetary Fund estimates.