South Korea’s equity market has overtaken India’s as the world’s sixth-largest stock market by market capitalization, marking a significant shift in global rankings driven by the artificial intelligence boom. The development comes just one week after Taiwan displaced India from the fifth-place position, leaving India in seventh place globally.
According to Bloomberg data, the total market capitalization of South Korean-listed companies has surged 86 percent this year to reach $5 trillion, while India’s market cap has declined to $4.8 trillion. As of June 1, South Korea’s market capitalization stood at $5.04 trillion compared to India’s $4.84 trillion, with Taiwan at $5.15 trillion ranking fifth globally.
The Korean market’s rally has been powered by Samsung Electronics Co. and SK Hynix Inc., both newly minted members of the $1 trillion valuation club. These semiconductor giants are central to the global AI buildout, with Samsung Electronics and SK Hynix dominating AI memory chips and lifting the Kospi’s 2026 gains to more than 100 percent.
India’s slip down the rankings reflects several headwinds including significant foreign institutional investor sell-offs, sluggish earnings growth, and limited presence in AI-related stocks. The absence of major AI chip companies comparable to Nvidia or Taiwan Semiconductor Manufacturing Company has left listed Indian companies unable to match the technology-driven surge seen in Korean markets.
This marks the first time since 2003 that South Korea has surpassed India in stock market size. Over the past year, South Korea’s market has moved ahead of Canada, Germany, the United Kingdom, and France to claim the sixth position. The shift underscores how global investors are favoring markets tied directly to the AI supply chain, particularly those with strong semiconductor manufacturing capabilities.
Read Article: Maharashtra Signs Record Rs 2 Lakh Crore AirTrunk Data Centre Deal Near Navi Mumbai Airport
