South Korean markets smash records as investors bet on AI and corporate governance reforms

South Korea's benchmark Kospi Index has been on a record-breaking spree this month, hitting 16 intra-day records so far, propelled by a mix of AI-driven optimism about chip firms and sweeping corporate governance reforms. The rally has pushed the index past the 4,000 mark, with nearly 21% gains in October alone so far. The index has soared more than 72% this year, beating regional peers including Japan's Nikkei 225, up 26%, and mainland China's CSI 300 that has gained more than 19%. The rally in South Korea stocks reflects both global AI tailwinds and local structural changes that are steadily eroding the long-standing "Korea discount," analysts told CNBC. "You can't ignore AI — that's a secular growth driver for the next few years," said Arjun Jayaraman, portfolio manager at Causeway Capi