Following the election and inauguration of President Lee Jae-myung, South Korea’s benchmark stock index, the Kospi, experienced a significant rally, closing at a new yearly high of 2,770.84 with a 2.66% gain on the day Lee took office. This surge was driven by strong foreign and institutional investor buying, reflecting optimism about Lee’s pro-growth agenda, including planned reforms in corporate governance and a substantial investment in high-tech sectors like AI and green energy. Market analysts note that the rally represents a “post-election honeymoon” effect, with expectations that Lee’s policies could push the Kospi beyond 3,000 points within the year, potentially reaching as high as 3,300. The president’s pledge to usher in a “KOSPI 5000 era” and swift legislative actions to enhance shareholder rights have further bolstered investor confidence, marking a break from previous administrations’ approaches. Overall, the Kospi’s growth signals renewed market optimism tied closely to political clarity and ambitious economic reforms under the new administration.