South Korea Stocks Cap Strongest Rally in 25 Years as Kospi Surges 76%

South Korea's equity market experienced its strongest rally in 25 years, with the Kospi Index surging 76% in 2025. This growth was driven by gains in semiconductors, defense, nuclear power, and K-beauty sectors. Major contributors included Samsung Electronics and SK Hynix, alongside significant rises in companies like Hyosung Heavy Industries and Doosan Enerbility. Analysts predict continued upside in 2026, supported by AI-related investments and infrastructure modernization, despite some sectors facing challenges. Defense contractors and K-beauty firms also contributed to the rally, while game developers and parts of the EV supply chain struggled.