Kospi heads for biggest first-half gain in 26 years

Stretched valuations: Screens showing the Kospi reading in a bank in Seoul. Its rally may be overheating the market, raising the risk of a correction, say experts. — AP

Seoul: South Korea’s benchmark Kospi index surged 27% in the first half of this year (1H25), its strongest performance in over two decades, as investor optimism swelled under the new administration.

But with valuations stretched, analysts warn the rally may be overheating the market, raising the risk of a correction.