The Kospi is South Korea’s benchmark stockmarket index. It is typical of emerging markets, in that it is highly exposed to the global economic cycle.
South Korea's benchmark stockmarket index, the Kospi, is typical of emerging markets: it is highly exposed to the global economic cycle. Cyclical stocks (which are particularly sensitive to these ups and downs) comprise round 80% of the index.
Market heavyweight Samsung dominates the consumer goods sector and accounts for almost a fifth of the overall market, while the car and car-parts sector, dominated by Hyundai, accounts for nearly a tenth. Industrial and technology companies, many of which are export-orientated, comprise another quarter of the Kospi.
Some personal and household goods groups, along with small utilities and health-care sectors, make up the defensive segment.