A Relentless Rally in the Stock Market (Image courtesy of Yonhap)
SEOUL, Oct. 15 (Korea Bizwire) — Global asset manager Franklin Templeton has identified South Korea as one of the key drivers of the global emerging market rally this year, highlighting its diversified industrial base and robust stock market performance.
In a report released Tuesday, the firm noted that emerging market equities have surged more than 28 percent in U.S. dollar terms so far this year—double the 14 percent gain of the S&P 500 index.
The rally, Franklin Templeton said, was fueled by a weaker dollar, shifting policy dynamics, resilient growth relative to advanced economies, and evolving global capital flows.
A dealer works at the main dealing room of Hana Bank in Jung District, Seoul, on September 22. (Yonhap)
Among emerging economies, South Korea and China led the upturn, with their markets rising 61 percent and 37 percent, respectively, as of late September. Franklin Templeton credited Korea’s gains to its expanding array of growth engines—from semiconductors and defense to shipbuilding, beauty, culture, and medical tourism.
The report emphasized that the rebound in global memory chip demand has been pivotal. “Korea’s technology sector, anchored by its leadership in semiconductor manufacturing and investments in artificial intelligence, has been the key driver of momentum,” it said.
Yet the asset manager also underscored that Korea’s market strength extends beyond semiconductors. “The Korean stock market has achieved impressive diversification,” the report said, noting that its three largest sectors—telecommunications, technology, and industrials—each account for roughly 20 percent of market capitalization, with significant contributions from financials and consumer goods.
The report also highlighted Korea’s rising profile in defense manufacturing and its growing role as a strategic shipbuilding partner for the United States. Additionally, exports of K-beauty and K-culture products, along with a booming medical tourism sector, were cited as expanding pillars of the country’s global competitiveness.
“As emerging markets reclaim their role as global growth leaders, the question is no longer whether to invest in them—but where,” said Dina Ting, Franklin Templeton’s head of global index portfolio management. “South Korea stands out as an especially compelling destination, where industry, culture, and healthcare innovation converge.”
Ashley Song (ashley@koreabizwire.com)