South Korea’s KOSPI Surpasses 6,000 Amid Chipmaker Rally and Banking Sector Shifts

Seoul’s benchmark KOSPI stock index broke through the 6,000-point mark on February 25, 2026, for the first time, continuing a rapid ascent fueled by gains in the semiconductor industry. This surge is prompting strategic responses from South Korean banks, adjusting deposit rates and loan strategies to navigate the evolving financial landscape.

KOSPI’s Historic Rise

The KOSPI crossed 5,000 on January 27, 2026 and reached 6,000 just 29 days later, a testament to the strength of the current market rally. The AI-driven semiconductor supercycle is widely credited as the primary driver of this growth. On February 25, 2026, the index traded at 6,012.44, up 42.8 points, or 0.72 percent, from the previous session’s close. The index finished at a record high of 6,083.86 after hitting an intraday high of 6,144.71.

Banking Sector Response: Increased Deposit Rates

As the stock market boom encourages capital to move from banks to securities companies – a phenomenon known as a “money move” – South Korean banks are responding by increasing term deposit interest rates. The five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) raised rates by 0.05 to 0.1 percentage points, reaching a maximum of 2.8 to 2.9 percent annually. Internet banks are offering even higher rates, around 3 percent. This increase is largely aimed at preventing customer churn and securing loan resources.

Platform Strategy and Loan Focus for Internet Banks

Internet banks, which rely heavily on maintaining a consistent user base within their apps, are particularly focused on retaining customers. They are raising interest rates to encourage customers to retain funds within their platforms, offering a convenient environment for all financial services. Data suggests that connecting loan applications directly within platforms like Toss increases conversion rates significantly. This strategy allows internet banks to gather customer lending data and potentially convert them into loan customers.

With growth in household loans slowing due to government policies, internet banks are increasingly focusing on loans to individual business owners. Toss Bank, for example, recently offered rewards for opening business accounts, aiming to secure a primary transaction account for business funds. K Bank has also expanded its real estate mortgage loan refinancing scope and increased credit loan limits.

Maintaining Loan-to-Deposit Ratios

To support increased lending, banks necessitate to maintain healthy loan-to-deposit ratios. Raising deposit interest rates is a proactive measure to secure the necessary funds and comply with regulatory requirements. An official in the financial industry noted that lending to individual businesses is now “an inevitable choice” for internet banks, and preemptive preparation of surplus funds is crucial.