South Korea's stock market experienced its best rally in 25 years in 2025, with the Kospi Index soaring 76%. This surge was driven by strong performance in arms exporters, AI-related companies, and K-beauty sectors, notably including chip giants Samsung Electronics and SK Hynix. Analysts from firms like Citigroup and JPMorgan predict continued growth, forecasting at least a 20% climb next year, supported by robust earnings and demand for AI infrastructure.