New Delhi, May 21 -- South Korea has emerged as one of the world's best-performing equity markets in 2026, driven by an explosive artificial intelligence-led semiconductor boom, sweeping shareholder-friendly reforms and record inflows from both foreign and domestic investors.

In a historic rally, the benchmark KOSPI surged from the 5,000 mark to a record high of 8,000 before witnessing a healthy consolidation toward the 7,200-7,500 range following a mid-May global macro adjustment. Even after the pullback, the index continues to trade near 7,400, having gained around 77% so far this year.

The rally has dramatically transformed South Korea's standing in global finance. The country's overall market capitalisation has climbed to nearly $4....