Seoul, South Korea - South Korean shares experienced a significant rally on Wednesday, June 4, 2025, with the KOSPI index climbing over 2% to reach a 10-month high. This surge followed Lee Jae-myung's election as president, driven by investor optimism regarding forthcoming economic stimulus and market reforms.
The benchmark KOSPI index jumped as high as 2.3% in early trading, hitting 2,761.54, a level unseen since August 1, 2024. Lee Jae-myung, who assumed office on Wednesday after his election victory on Tuesday, has pledged to implement corporate reforms aimed at boosting the domestic stock market and revive an economy facing slowing growth.
The securities sector led the gains, soaring over 6%, while financial groups rose by more than 3%. Analysts predict that these sectors will benefit the most from the anticipated market reform initiatives. Morgan Stanley analysts have set a KOSPI target of 2,800 for June 2026 in their base case and 3,100 in a bullish scenario, expecting meaningful progress in capital market and governance reform post-election.