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S&P 500 vs KOSPI: Which Market to Invest in 2026?

Comparing S&P 500 and KOSPI performance, valuations, and outlook for 2026. Which market offers better returns?

πŸ€– AI Analyst4 stocks analyzed⏱ 10 min readπŸ“… 2026-02-04

S&P 500 vs KOSPI: 2026 Comparison

Valuation Comparison

| Metric | S&P 500 | KOSPI |

|--------|---------|-------|

| P/E Ratio | 22x | 11x |

| P/B Ratio | 4.5x | 0.9x |

| Dividend Yield | 1.3% | 2.5% |

| EPS Growth | 12% | 18% |

S&P 500 Advantages

  • World's deepest, most liquid market
  • Home to AI mega-cap leaders (NVDA, MSFT, AAPL)
  • Strong corporate governance standards
  • Dollar-denominated (safe haven currency)
  • 15% annualized returns over 10 years
  • KOSPI Advantages

  • Trading at half the P/E of S&P 500
  • Value-Up Program as structural catalyst
  • World-class companies at deep discounts
  • Higher EPS growth expectations
  • Won weakness means cheaper entry for foreign investors
  • AI Analysis: Split Allocation

    **Recommended: 60% S&P 500, 40% KOSPI**

    The S&P 500 offers quality and AI exposure, while KOSPI offers deep value and reform catalysts. This combination maximizes risk-adjusted returns.

    Historical Context

  • KOSPI has outperformed S&P 500 in recovery years (2009, 2020)
  • S&P 500 dominates in AI/tech-driven bull markets
  • Korean market tends to lead in commodity/manufacturing cycles
  • ⚠️ This information does not constitute investment advice. Investment decisions should be made at your own judgment.