FOMO kicks in as Kospi touches 'once-unthinkable' 5,000

Dealers celebrate at Hana Bank’s dealing room in central Seoul after the KOSPI topped the 5,000 mark in early trading Thursday. (Yonhap)

South Korea’s benchmark stock index briefly crossed the once-unthinkable 5,000 mark in early trading Thursday, a historic milestone that stirred jubilation across the country.

But for many watching from the sidelines, the moment left a bitter aftertaste, a sense of having missed the rally.

The Kospi index finished the day at 4,952.53, after touching an intraday high of 5,019.54, marking the first time in history the index crossed the 5,000-point threshold. Compared with a year ago, when it closed at 2,547, the benchmark has risen about 94 percent, nearly doubling.

Lee, a self-employed businessman in his 50s, said the rally has left him stuck between caution and fear of missing out.

“Hyundai Motor nearly doubled from around 300,000 won to almost 600,000 won in less than a month,” he told The Korea Herald. “Blue-chip stocks usually don’t move that fast, so I kept telling myself it wouldn’t last. Before I knew it, the rally just kept going.”

He now finds himself questioning whether buying at current levels would mean stepping in too late. “Samsung Electronics and SK hynix are in a similar situation,” he said. “I’m seriously wondering whether chasing today’s momentum could end in losses.”

The three companies he cited — Hyundai Motor, Samsung Electronics and SK hynix — have long been the Korean market’s blue-chip mainstays, stocks that even first-time investors would consider first.

Investors who bagged the three stocks a year ago would have reaped the fruits of the latest rally.

Samsung Electronics closed at 54,100 won on Jan. 22, 2025, but traded at above 150,000 won a year later on Thursday. Hyundai Motor went from 208,500 won to 574,000 won during the same period, while SK hynix nearly quadrupled, rising from 199,700 won to 768,000 won.

The rally was not entirely unexpected. Rather, it was more of a political slogan that many investors initially dismissed.

President Lee Jae Myung, while campaigning in last year’s presidential election, livestreamed himself investing 40 million won in two exchange-traded funds as part of his pledge to usher in a “Kospi 5,000 era.”

According to data from Koscom, the Kodex 200 ETF that Lee purchased has risen 115.8 percent as of Wednesday, while the Kodex Kosdaq 150 gained 37.9 percent over the same period.

Jeon Ji-won, a 25-year-old university student who owns shares in YG Entertainment, Kakao and APR, described herself as a “victim of FOMO.”

“Since last year, my social media feeds have been flooded with stock-related content,” she said. “I kept seeing people my age talk about making 100 million won. I didn’t want to feel left out, not just financially, but socially, so I started investing.”

Despite posting some gains, her stock picks did not align with the rally’s strongest performers, particularly in the technology sector.

“Samsung Electronics and SK hynix keep making headlines for hitting record highs,” she said. “I feel like they’ve already risen too much, but people around me say they’re the safest bets on the Kospi. That leaves me wondering if I should jump in anyway.”

Park Jung-ho, a 37-year-old office worker, said soaring prices have made decision-making harder, not easier.

“Since the stock market is performing well, it’s creating a sense of euphoria among investors, including myself and those around me. But because prices keep going up, I feel apprehensive about when to sell, which one to sell, which one to buy and whether to follow what others are doing,” he said.

Others said they intend to avoid being swept up.

Hwang, a 33-year-old bank employee in the US, who wishes to benefit from the rally, said the current investment enthusiasm is largely fueled by hype circulating among people’s peers and social circles.

“From what I see around me, many people are not investing after studying stocks as a long-term commitment. Instead, they jump in after hearing from friends or watching YouTube stories about others making big money,” he said.

“There is a strong sense that if they do not buy stocks others are buying or selling, they will be left behind. I know several people who rushed into different investments during the cryptocurrency boom a few years ago, only to suffer heavy losses.”

Choi Won-ho, a 40-year-old accountant, said he isn’t swayed.

“I’ve been doing stocks for nearly two decades, so there’s no anxiety," he said, adding that he focuses on market themes and whether foreign or institutional investors are entering before making any trades.

"Because I trade based on that, I don’t feel a strong fear of missing out.”

Intern reporters Lee Yeon-jae and Jang Hae-rin contributed to this article.