South Korea's stock market value has surpassed that of Germany, driven by a rally in technology stocks fueled by the global craze for artificial intelligence and robotics. As of Wednesday, the market value of South Korea's stock market reached $3.25 trillion. This surpasses Germany’s $3.22 trillion and makes South Korea the tenth largest stock market in the world.
South Korea's Kospi is up 23% so far in 2026, while Germany's Dax is up just 1.7%, weighed down by geopolitical uncertainty and a lack of clarity on stimulus measures.
While South Korea is catching up in terms of stock market capitalization, the two economies are still far apart in size. According to the World Bank, South Korea's gross domestic product (GDP) ranks 12th in the world in 2024, while Germany ranks third.
The gap between South Korea's stock market and the real economy reflects the structural gap between export-driven corporate profits and weak domestic demand.