South Korea’s KOSPI Surpasses 5,000 as AI Law Takes Effect and BTS Plans Return

Updated 2026-01-22 08:04:56+00:00 (40 articles)

KOSPI breaches 5,000 amid tech rally The Korea Composite Stock Price Index opened about 2 % higher and briefly climbed past the 5,000‑point level, the first such intraday breach this year, driven by semiconductor and AI‑related shares [1][2][3][4]. A senior finance ministry official pledged continued market‑friendly reforms to sustain the momentum and convert the “Korea discount” into a premium [3]. The surge follows a 12‑session winning streak that began the year, underscoring strong domestic investor confidence [4].

AI Basic Act becomes world’s first comprehensive AI law South Korea’s Basic Act on the Development of Artificial Intelligence and the Establishment of a Foundation for Trustworthiness officially took effect on Jan 22, creating a regulatory framework to curb misinformation, ensure model safety, and promote trustworthy AI [1][2]. Officials highlighted the law as the first national legislation of its kind, positioning the country as a global leader in AI governance [2]. The act coincides with heightened market optimism around AI‑driven demand for technology stocks [1].

BTS comeback show receives conditional approval in Seoul The Seoul city government conditionally approved BTS’s request to stage a comeback concert in Gwanghwamun Square in March, requiring compliance with safety standards [1][5]. The approval follows Hybe’s broader venue applications, including historic sites such as Gyeongbok Palace, reflecting the group’s cultural significance amid the market rally [5]. The event is slated as “BTS 2026 Comeback Show @ Seoul,” pending final safety clearance [1].

Economic backdrop shows modest growth and severe cold South Korea’s economy expanded by 1 % in 2025, buoyed by strong exports, while Q4 2025 contracted 0.3 % quarter‑on‑quarter, indicating sector‑specific weakness [2]. A nationwide cold wave pushed temperatures to –24.2 °C in Gangwon Province, with wind chills reaching –36.8 °C, affecting residents and travel conditions [2][5]. These macro‑economic and weather factors provide context for the market’s resilience and policy focus [5].