Investors Rejoice... 'Record-Breaking Bull Market' in Korea, ETFs Deliver Over 140% Returns [2026 KOSPI 5000] ①

Global AI Boom: Samsung and SK Hynix Market Cap Surpasses 1,100 Trillion Won
Robotics Stocks Soar on Manufacturing Automation and AI Integration
Defense, Nuclear Power, and Semiconductor ETFs Surge on Structural Growth

In 2025, the South Korean stock market experienced a bullish year, with 'artificial intelligence (AI)' serving as the common denominator driving gains. Semiconductors led the rise of the KOSPI index on the back of earnings recovery, while the robotics sector emerged as a new growth area, fueled by policy expectations and the integration of AI technologies.

Within the domestic exchange-traded fund (ETF) market, products related to industries such as defense, nuclear power, electric power infrastructure, semiconductors, and renewable energy-sectors experiencing structural growth amid shifting international dynamics and developments in the AI industry-ranked among the top performers in annual returns. Notably, the surge in gold and silver prices led to high returns for related ETFs as well.

Semiconductor and Robotics Stocks Ride the Wave of AI-Driven Structural Growth

This year, the semiconductor sector was undoubtedly at the center of the domestic stock market. Samsung Electronics and SK Hynix soared on the analysis that the semiconductor industry had entered a phase of structural growth, moving beyond a cyclical recovery and driven by AI demand. Compared to the beginning of the year, their stock prices rose by more than 110% and 230%, respectively.

Buoyed by the rally in Samsung Electronics and SK Hynix, the KRX Semiconductor Index jumped from around 2,950 at the start of the year to the 6,000 level. The KOSPI index also surpassed the 4,000 mark for the first time ever in October, and the combined market capitalization of the two companies exceeded 1,100 trillion won.

This year, the semiconductor market entered a new phase of growth, with demand for forward-looking products such as high-bandwidth memory (HBM) for processing AI data coming to the fore, rather than simply recovering memory demand. In addition, news of strengthened partnerships with global AI companies such as Nvidia had a positive impact on investor sentiment toward domestic semiconductor stocks.

It was not only optimism but also tangible earnings that drove stock prices higher. As of the end of the third quarter, Samsung Electronics posted an operating profit of 12.17 trillion won, a 32.5% increase from the same period last year and more than 16% above the market consensus of 10 trillion won. SK Hynix also reported operating profit of 11.38 trillion won for the third quarter, a 62% year-on-year increase.

Alongside semiconductors, the robotics sector showed the most dramatic transformation this year. At the beginning of the year, robotics stocks were seen as niche theme stocks, but as the year progressed, they moved to the center of policy and industrial strategy. Manufacturing automation, demographic changes, and advances in AI technology converged, drawing intense investor attention.

Major robotics stocks such as Rainbow Robotics and Robotis posted significant gains throughout the year, with their stock prices rising by 129% and 1,135%, respectively. In particular, the collaborative and intelligent robotics segments drew attention as they were seen as representing the 'physical expansion of AI.'

However, some stocks experienced sharp volatility amid concerns that their valuations had become excessive compared to actual earnings. For example, Doosan Robotics started the year at around 56,000 won, dropped to about 39,000 won in the second quarter, and ended trading at 78,700 won on December 24.

From Defense to Gold and HBM: ETFs Delivering Over 140% Returns

The top 10 ETFs listed on the domestic stock market this year all posted annual returns exceeding 140%, showing a clear performance gap compared to general index ETFs.

The highest annual return was delivered by the 'PLUS K-Defense ETF,' which rose by 182.62%. As global geopolitical tensions persisted, countries continued to increase their defense spending, and the rise in export contracts for domestic defense companies translated directly into higher stock prices. Defense-themed ETFs were not limited to a single product but occupied multiple spots among the top performers. The 'TIGER K-Defense & Space ETF' posted a return of 158.29%, while the 'SOL K-Defense ETF' delivered 147.71%, underscoring the strength of the defense sector as a whole.

The second-highest return came from the 'HANARO Nuclear Power iSelect ETF,' with an annual return of 174.15%. This is attributed to the revaluation of the nuclear power industry amid global decarbonization policies and the growing need for stable power supply. In particular, expectations for new domestic and international nuclear power plant contracts and discussions on extending the lifespan of existing plants fueled gains in nuclear-related stocks.

Resource-related ETFs also delivered standout performances. The 'HANARO Global Gold Mining Companies ETF' climbed 169.19%, ranking third. This reflected expectations for improved earnings among gold mining companies. In addition, the 'ACE Gold Futures Leverage (Synthetic H)' ETF rose 146.87%, making it into the top 10. The preference for safe-haven assets and the surge in gold prices were key factors behind these high returns.

Silver-related ETFs also showed strong momentum. The 'KODEX Silver Futures (H)' ETF posted a return of 120.13%. Silver is a metal with high industrial demand in sectors such as solar power, electric vehicles, and semiconductors, benefiting from the expansion of investments in eco-friendly energy and advanced industries. While gold was mainly seen as a safe-haven asset, silver's role as an industrial metal was highlighted, leading to even stronger price momentum, according to market assessments.

Advanced industry and infrastructure themes also ranked among the top performers. The 'PLUS Global HBM Semiconductor ETF' rose 155.13%, reflecting the benefits of rising demand for AI and HBM. The 'KODEX AI Power Core Equipment ETF' also gained 146.15%, as expectations for increased investment in power facilities for AI data center expansion translated into ETF returns. Meanwhile, the 'PLUS Solar & ESS ETF' climbed 152.78%, reflecting the growth potential of the renewable energy and energy storage system (ESS) industries.

Among traditional industries, the 'TIGER 200 Heavy Industry ETF' stood out with a 147.18% gain. The shipbuilding, construction machinery, and plant sectors benefited from expectations of improved earnings amid the global expansion of infrastructure investment.

Kang Sohyun, Senior Research Fellow at the Capital Market Research Institute, stated, "This year, the domestic stock market rose at an unusually rapid pace, signaling a phase of structural transformation. However, there was also a tendency for excessive concentration in a handful of mega-cap stocks. For the KOSPI 4,000 level to become a new normal rather than a temporary peak, systematic support for the discovery, research and development (R&D), and financing of next-generation core companies such as those in AI and semiconductors is necessary."