Goldman Sachs: KOSPI Rallies 14% on Strong Tech and Better-Than-Expected Exports; Target Raised to 9,000
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Key Views
The technology sector remains the primary growth engine, particularly semiconductors and AI-related stocks. Goldman Sachs has upgraded its 2026 earnings growth forecast for Korea to 300%, reflecting the most robust earnings revisions in the region, favoring tech hardware and industrials. The KOSPI's price-to-earnings ratio trades near negative two standard deviations, marking one of its lowest levels outside of specific historical extremes. Excluding Samsung Electronics and SK Hynix, the broader market remains cheaper than other major Asian markets. Foreign fund inflows into Korea, including ETFs, have recently been the strongest, significantly supporting market liquidity. Goldman Sachs maintains an overweight rating on Korea.
Outlook
The global tech cycle recovery and expanding AI demand are core catalysts. However, geopolitical risks on the Korean Peninsula and uncertain global demand remain key downside risks. The report projects 2026 GDP growth at 2.5%.
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