After a series of upgrades, global brokerage firm Goldman Sachs has trimmed its 12-month target for South Korea’s KOSPI index to 9,000 points from 12,000, marking a 25% reduction. The brokerage cited concerns over the sustainability of the artificial intelligence (AI) trade and a sharp retreat in Korean chip stocks.
Analysts, including Timothy Moe, lowered their 12-month target for South Korea’s benchmark equity index, adopting more conservative valuation assumptions after the benchmark plunged more than 35% from its June peak. According to Bloomberg, the selloff has left Korean equities significantly undervalued, and the revised forecast still implies more than 60% upside from current levels.
Goldman Sachs last raised its KOSPI target in June and maintained the 12,000-point forecast even as stocks in the index came under pressure during a global AI-led selloff that began later that month.
South Korean stocks, particularly SK Hynix and Samsung Electronics, have been among the market’s frontrunners since the beginning of 2026 as the AI theme gathered momentum. The rally propelled the KOSPI to gains of around 120% at its peak.
However, the rally reversed sharply in the second half of the year as escalating tensions in the Middle East kept crude oil prices elevated, fuelling inflation concerns and prompting interest-rate hikes across major central banks.