"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 demonstrates one of the strongest performances in the world, an analysis from Italy has drawn attention by suggesting that the appeal of Korean culture is being reflected even in the capital markets.

Angela Argento, president of the Italian private cultural association 'Cultura Italiae,' discussed the globally-discussed KOSPI rally in an op-ed published on the 13th (local time) in the daily newspaper 'Il Sole 24 Ore.' Regarding this, she evaluated, "It is the result of a national project in Korea that has been underestimated by the West, now proven by the numbers."

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

The market capitalization of KOSPI has surged more than 80% from the beginning of this year to the present, surpassing the growth rates of other major global financial markets such as Taiwan and the United Kingdom. Argento pointed out, "You should not interpret this only through financial news, and explaining the KOSPI rally solely with technical factors is an analytical error."

Instead, she argued that a 'global preference for Korea' has become the driving force behind the KOSPI rally, emphasizing that the allure of Korean culture is attracting the attention of global investors.

As specific examples, Argento cited Korean pop music and dramas. She stated that K-pop is a case where a system, achieved through a balance of public and private investment, has risen as a form of cultural diplomacy, and that dramas have evolved into branding that goes beyond national promotion. In addition, she diagnosed that not only the Korean cosmetics industry but also trendy hotspots throughout Seoul are drawing both tourists and investors from around the world 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 analyst reports, the market incorporates all of these factors into its pricing."

On the other hand, Argento argued that Italian culture lags behind Korean popular culture. Although Italy has 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 sustain the kind of imagination recognized by the whole world. It merely passes down, exhibits, and consumes it, but fails to reproduce or organize it."

She added, "Korea has succeeded in positioning itself as a country that can speak for a more modern, more coherent, and more global era," stressing, "The financial market, in its cold logic, reflects this difference in prices." The market capitalization of the Milan Stock Exchange is only about one-fifth that of the KOSPI.

Argento concluded, "Italy's past is still great and continues to draw countless tourists," but pointed out, "The real risk for Italy is not losing its past, but being left behind as a 'wonderful museum' while the world dreams of other places."

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