"Why Is the Korean Stock Market Surging?"... Even Italy Is Astonished by the KOSPI Rally

Italian Cultural Association President: "Korea, Preferred by the World"
"Financial Markets Ruthlessly Reflect the Difference"

As the KOSPI index continues to display world-leading strength, there is growing interest in an analysis from Italy suggesting that the appeal of Korean culture is now being reflected in the capital markets as well.

Angela Argento, president of the Italian private cultural association Cultura Italiae, discussed the globally talked-about KOSPI rally in a column published on the 13th (local time) in the daily newspaper Il Sole 24 Ore. She evaluated it as "the result of South Korea's national projects, underestimated by the West, now proven in figures."

BTS Tour Poster at Tokyo Dome, Japan. Photo by Yonhap News Agency

The KOSPI market capitalization has soared by more than 80% from the beginning of this year until now, surpassing the growth rates of major global financial markets such as Taiwan and the United Kingdom. Argento pointed out, "It should not be interpreted solely through financial news, and explaining the KOSPI rally only through technical factors is an analytical mistake."

Instead, she argued that the "global preference for Korea" has become the driving force behind the KOSPI rally, asserting that the allure of Korean culture is capturing the attention of global investors.

As concrete examples, Argento cited Korean pop music and dramas. She described K-pop as a system born from the balance of public and private investment, which has risen to the level of a cultural diplomat, while Korean dramas have become a form of branding that goes beyond simple national promotion. She also diagnosed that, thanks to Korea's cosmetics industry and trendy hotspots throughout Seoul, both tourists and investors from around the world are flocking to Korea.

The KOSPI surged more than 4%, closing for the first time ever in the 7,800 range. On the 11th, the status board showing the KOSPI, etc., was displayed in the dealing room of the Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News

She emphasized, "Even if not explicitly stated in reports, the market reflects all of these factors in prices."

On the other hand, Argento argued that Italian culture is falling behind Korean pop culture. Although Italy possesses many advantages—such as luxury brands, cuisine, and advanced manufacturing—it has not developed the kind of cultural imagination seen in Korea. She criticized, "Italy cannot independently operate the kind of imagination that is recognized globally. We simply inherit, exhibit, and consume it, but we do not reproduce or organize it."

She went on to say, "Korea has succeeded in presenting itself as a more modern, more consistent, and more global nation," and stressed, "The financial markets, ruthlessly, are reflecting this difference in prices." The market capitalization of the Milan Stock Exchange is only one-fifth that of the KOSPI.

Argento added, "Italy's past remains great and continues to attract countless tourists," but cautioned, "Italy's risk is not losing the past, but remaining a 'marvelous museum' while the rest of the world dreams elsewhere."

This content was produced with the assistance of AI translation services.