Because the KOSPI index continues its upward trajectory, breaking by means of the 4,100 stage once more, market consideration is concentrated on KB Securities’ announcement forecasting subsequent yr’s index peak at 7,500 factors. This represents a uniquely excessive determine in comparison with different securities corporations’ analysis facilities, which predict the KOSPI will attain 4,600-5,000 factors subsequent yr.
In line with Korea Alternate on Nov. 12, the KOSPI index rose 0.81% to shut at 4,106.39 factors the day prior to this. This marks a return above the 4,100 stage after one week since Nov. 4.
At a seminar held on the Korea Alternate on “Leaping into the KOSPI 5,000 Period,” Kim Dong-won, head of KB Securities Analysis Heart, defined, “Korea’s KOSPI is buying and selling at a 60% low cost to the Asian common PBR,” including that “within the main bull markets of 1985 and 2003, greenback weak point led the growth of valuation multiples.”
He emphasised the present scenario as “just like the early section of the Eighties ‘three-low growth,’” stating, “If the bull market continues, we will count on the KOSPI index to succeed in 7,500 factors.”
Kim had beforehand offered a goal of 5,000 factors for subsequent yr’s KOSPI in his Nov. 6 funding technique report, whereas noting, “In a long-term bull market state of affairs, although topic to revision primarily based on future earnings forecast adjustments, the KOSPI might rise to 7,500 stage.”
He projected that “subsequent yr’s KOSPI working revenue is predicted to succeed in a file excessive of 410 trillion gained, up 36% year-on-year, pushed by semiconductors and electrical energy,” whereas dismissing issues about an AI bubble, stating, “Current comparisons between the 2025 synthetic intelligence (AI) trade and the 1999 dot-com bubble are untimely.”
He reiterated on the seminar, “Throughout the dot-com bubble, the U.S. entered a interval of rate of interest hikes, and the federal government maintained fiscal surplus whereas implementing austerity insurance policies,” contrasting this with the current: “At the moment, accommodative financial and monetary insurance policies are being applied in parallel, and whereas the typical PER (price-to-earnings ratio) of dot-com corporations in 1999 was about 60 instances, the present common PER of U.S. M9 corporations like Broadcom and Oracle is just about 30 instances, half of that stage.”
He emphasised, “Subsequent yr’s working revenue for KOSPI-listed corporations is projected to succeed in 410 trillion gained, a rise of roughly 36% (107 trillion gained) in comparison with this yr,” including, “About 69% of this may come from Samsung Electronics (005930) and SK Hynix (000660).”
In the meantime, Kiwoom Securities cited issues about inflation because of tariff impositions by the US Trump administration as downward stress on the inventory market, presenting a peak goal of 4,500 for subsequent yr. Korea Funding & Securities and Yuanta Securities Korea every forecast 4,600. Shinhan Securities offered 5,000 whereas noting, “International inflation, commerce friction between the U.S. and China, and U.S. midterm elections might enhance market volatility.”
In his opening remarks on the seminar, Korea Alternate Chairman Chung Eun-bo acknowledged, “Main international funding banks analyze that the current KOSPI rise outcomes from improved market fundamentals centered on the restoration of competitiveness in key industries and value-up initiatives,” including, “They’re forecasting that not solely KOSPI 5,000 however even 6,000 is feasible.”
