S. Korean stock market cap exceeds GDP

The benchmark Kospi figures are displayed at a dealing room of a local bank in Seoul, Wednesday. (Yonhap)
The benchmark Kospi figures are displayed at a dealing room of a local bank in Seoul, Wednesday. (Yonhap)
The ratio of the total market capitalization of listed firms on the benchmark Kospi to the nation’s gross domestic product hit an all-time high last year amid a retail stock fad, according to the Korea Exchange on Friday.

The Kospi market cap amounted to 1,980.5 trillion won ($1.82 trillion) as of Wednesday, the last trading day of 2020, hitting 104.2 percent of the year’s estimated nominal GDP of 1,900 trillion won, it said.

The size of the stock market compared to the real economy set a fresh record in the wake of the stock trading fever. The Kospi ended at a record high of 2,873.47 on the given day, up 52.96 points, or 1.88 percent, from the previous session’s close.

The gain was fueled by blue chip shares, including market bellwether Samsung Electronics. Samsung Electronics grew 3.45 percent to close at 81,000 won, surpassing the level of 80,000 won for the first time. The global tech giant became the most-bought stock among companies listed on the local bourse, with its individual investors buying a net 14.7 trillion won in its common and preferred shares, data showed.

Source: korea herald