Business · Markets · 33 mins ago
Goldman cuts South Korea’s Kospi target by 25%
Goldman Sachs cut its 12-month target for South Korea’s Kospi by 25%, from 12,000 to 9,000 points.
The bank still sees more than 60% potential upside from the index’s current level.
The Kospi has fallen more than 35% from its June peak, as investors worry that heavy AI spending may not deliver enough returns and higher financing costs add pressure.
The index is closely tied to the AI trade because major chipmakers Samsung Electronics and SK Hynix have large weights in it.
Goldman says the selloff is excessive and that current chip valuations assume semiconductor profits will fall 65% in 2027, a scenario it considers too pessimistic.
The bank says South Korean shares are among the world’s cheapest markets and still sees opportunities in several sectors, including energy and industrials.
Goldman Sachs cut its 12-month target for South Korea’s Kospi index by 25%, from 12,000 to 9,000 points.
The bank cited deepening concerns about artificial intelligence investment and faster technology-stock selling.
Goldman still sees more than 60% upside for the index from its current levels.
Its strategists said the sell-off had gone too far and investors were too pessimistic about economic fundamentals.
- Who
- Goldman Sachs strategists, including Timothy Moe.
- What
- Goldman cut its 12-month Kospi target by 25%, from 12,000 to 9,000 points.
- When
- The reports were published on October 25 and 26, 2026.
- Where
- South Korea.
- Why
- Concerns about AI investment returns and technology-stock selling intensified. Rising financing costs also added pressure.
This story does not have two clearly opposing sides.
The Kospi reached a peak before falling more than 35%, according to Goldman strategists.
Bloomberg reported that Goldman cut its 12-month Kospi target by 25%.
Bloomberg HT reported the target reduction from 12,000 to 9,000 points.
- Target cut
- 25%
- Previous target
- 12,000 points
- New target
- 9,000 points
- Potential upside
- More than 60% from current levels
- Semiconductor earnings scenario
- Goldman said current valuations imply a 65% fall in sector profits in 2027