Korean Composite Stock Price Indexes (KOSPI)

What is KOSPI?

Korean Composite Stock Price Indexes (KOSPI) are a family of capitalization-weighted indexes that track the performance of stocks listed on the Korea Exchange. Collectively they measure market movements across different segments and industries of the Korean equity market.

Although the term KOSPI can refer to the entire family of indexes, market participants commonly use “KOSPI” to mean the KOSPI 200.

KOSPI 200 — the benchmark

The KOSPI 200 is the best-known KOSPI index. It comprises the 200 largest publicly traded common stocks in Korea and represents roughly 70% of the total market capitalization of the Korea Exchange. Because it covers large-cap Korean companies, the KOSPI 200 is often compared to the S&P 500 as a broad gauge of the country’s equity market.

Typical major components include Samsung Electronics, Hyundai Motor, SK Hynix, Korea Electric Power, and Shinhan Bank.

Other KOSPI indexes and products

The KOSPI family also includes indexes that target different market slices and sectors:
* KOSPI 100 — focused on mid-cap stocks (as presented here).
* KOSPI 50 — represents small-cap stocks (as presented here).
* Industry-specific KOSPI indexes — chemicals, banks, etc.
* KODI — an index specializing in dividend stocks.

KOSPI indexes are also used as underlyings for futures, options, and products linked to sovereign bonds.

History and notable milestones

• The KOSPI 200 began trading in January 1983, with a starting value of 122.52. Its base value (indexed to January 4, 1980) is 100.
• By April 1989 the index had risen more than eightfold. Over the following decades it continued to grow, reaching about 2,470 by mid-2018 — more than a 20-fold increase since introduction.
• By the end of 2012 (its 30th anniversary) the index stood near 1,997.06.
• Notable single-day moves:
• June 17, 1988 — largest one-day percentage gain, about +8.5%.
• September 12, 2001 — a drop of more than 12%, the day after the 9/11 attacks.
• The index closed above 2,000 for the first time on July 24, 2007.

How investors use KOSPI

• Benchmarking: The KOSPI 200 is a primary benchmark for Korean equity-market performance.
• Product construction: ETFs, index funds, futures, and options frequently reference KOSPI indexes.
• Market coverage: Because the KOSPI 200 covers a large share of market capitalization, it serves as a useful proxy for broad market trends in Korea.

Key takeaways

• KOSPI denotes a family of capitalization-weighted indexes tracking the Korea Exchange; the KOSPI 200 is the most widely used.
• The KOSPI 200 tracks the 200 largest Korean stocks and is treated as the country’s principal market benchmark.
• The KOSPI family includes specialized indexes for different market segments, sectors, and dividend-focused equities, and is widely referenced by global financial media and market participants.