After Semiconductors and Automobiles, Are Batteries Next?... The 5,000-Point KOSPI Driven by Sector Rotation

Rotation Among Leading Stocks Continues to Drive KOSPI's Rally
Secondary Batteries Expected to Take the Baton Next
Surging Demand Projected for Robotics and Data Centers
U.S. Power Demand Growth Brings Attention to Power Equipment

With the KOSPI successfully reaching the historic "5,000-point" milestone, the rotation of leading stocks is being cited as a key driver behind this achievement. Until earlier this month, semiconductor stocks such as Samsung Electronics and SK Hynix saw strong gains, fueled by expectations for the artificial intelligence (AI) industry and a semiconductor super cycle. Subsequently, a rotation into large-cap leaders in the automotive (robotics) and defense sectors helped lift the index. Now, secondary battery and power equipment stocks are emerging as the next focal points.

As of 9:20 a.m. on January 23, the KOSPI stood at 5,008.14, up 55.61 points (1.12%) from the previous day. While the index broke through the 5,000-point mark the previous day, it failed to hold above that level as profit-taking emerged in the afternoon, with 5,000 acting as a psychological resistance. On this day, the KOSPI attempted to reclaim and settle above the 5,000-point level in early trading.

The reason the KOSPI has been able to maintain its upward momentum is the emergence of a rotation market, with buying interest shifting from semiconductor stocks-which have led the market since last year-to other leading sectors.

Samsung Electronics and SK Hynix together account for 35.75% of the total market capitalization in the KOSPI market, so typically, declines in these two stocks result in overall market weakness. However, this year has been different. On January 13, Samsung Electronics and SK Hynix fell by 0.86% and 1.47%, respectively, yet the KOSPI rose by 1.47%. The shift of buying interest to automotive and robotics stocks during a period of weakness in semiconductor stocks, due to a downturn in U.S. technology stocks, played a crucial role.

At the world's largest consumer electronics and information technology (IT) exhibition, CES 2026, held in Las Vegas from January 6 to 9 (local time), Hyundai Motor Group unveiled the humanoid robot "Atlas," sending its shares soaring. On the previous day, Hyundai Motor's market capitalization reached 108.5 trillion won, ranking third after Samsung Electronics and SK Hynix. Hyundai Motor's share price has risen by 78.41% so far this year. During the same period, Kia rose by 35.14%, and Hyundai Mobis increased by 21.58%.

In response, Samsung Securities raised its target price for Hyundai Motor from 650,000 won to 850,000 won. Lim Eunyoung, a researcher at Samsung Securities, stated, "Hyundai Motor's role goes beyond providing behavioral data for robots; it has been confirmed as a key player in AI training and robot production. The year 2026 will mark the start of robotaxi commercialization and the emergence of physical AI services. This is a time when we must not miss out on visible growth potential and should follow the trend."

However, Hyundai Motor's stock price fell by 3.6% the previous day as foreign investors engaged in significant profit-taking. Foreign investors were net sellers of Hyundai Motor shares worth 1.1034 trillion won, making it the most heavily sold stock.

With Hyundai Motor's share price, which has surged recently, expected to undergo a period of adjustment, investors appear to be eyeing batteries as the next leading sector after semiconductors and automobiles. The previous day, Samsung SDI rose by 18.67%, while LG Energy Solution gained 5.70%, Ecopro climbed 10.41%, and L&F advanced 12.81%.

As the robotics industry emerges as a core theme in the stock market, attention is once again turning to secondary batteries. In addition, signs of improving policy environments in global markets are supporting investor sentiment. Joo Minwoo, a researcher at NH Investment & Securities, commented, "Expectations for robotics have recently spilled over into expectations for all-solid-state batteries, leading to notable gains in related stocks. In addition to optimism about robotics, there is a seasonal pattern of share price increases for solid-state battery-related stocks ahead of the InterBattery event (March 11-13), where future technologies are showcased. As a result, interest in solid-state battery stocks is naturally intensifying at this time."

There are also projections that the growth momentum for secondary battery stocks will be strengthened by demand from robotics and data centers. Kang Dongjin, a researcher at Hyundai Motor Securities, explained, "Although the battery usage per robot is not large, considering the need for replacement batteries and other factors, this could develop into a significant market in the long term. Furthermore, while batteries currently account for a very small portion of robots, the requirements for safety, energy density, and lifespan are high, increasing the need for high-performance batteries." He added, "Not only energy storage systems (ESS) but also battery backup units (BBUs) based on cylindrical batteries for data centers will see strengthened shipment growth momentum."

Power equipment stocks are also among the next candidates expected to drive the market's strength. Year-to-date, HD Hyundai Electric is up 14.73%, LS ELECTRIC has risen 12.39%, and Hyosung Heavy Industries has advanced 31.89%. Factors such as increasing electricity demand in the United States and expectations for expanded orders are cited as reasons for the strength in power equipment stocks. Lee Hangyeol, a researcher at Kiwoom Securities, stated regarding HD Hyundai Electric, "This year's new order target has been increased by 10.5% compared to last year. Demand for ultra-high-voltage transformers in the North American market remains robust, and discussions are underway for orders of medium- and low-voltage transformers for data centers. Orders from Europe are also expected to expand rapidly."

The rotation among leading stocks is expected to sustain the KOSPI's upward trend. Noh Donggil, a researcher at Shinhan Investment & Securities, commented, "Reaching the 5,000-point level is not a goal achieved by a single theme. It is the result of a structural rally: tariff risk easing, followed by a semiconductor acceleration, then the spread of industrials and the emergence of a new automotive framework. This structure suggests that in the next phase, rather than a surge concentrated in a single sector, the index can be further elevated through new roles for existing growth engines and the addition of new candidates."