JPMorgan stated that AI (artificial intelligence) capital investment is expected to be "quite bullish," and issued an "Overweight" opinion on the Korean market from a medium- to long-term investment perspective of six to 12 months. Following Goldman Sachs' emphasis on its forecast for the KOSPI to reach the 12,000 level, JPMorgan highly evaluated the upside potential of South Korea's capital markets.
Mixo Das, head of Korean equity strategy at JPMorgan, said at "Korea Premium Weeks 2026," held on the 29th at The Grand Lotte Seoul in Jung-gu, Seoul, that "South Korea will be the market with the highest returns globally this year, following last year." He added, "Compared to Japan, South Korea remains very undervalued. From a perspective of more than six months, JPMorgan continues to maintain an Overweight opinion on the Korean market."
JPMorgan analyzed the growth drivers of the Korean market as △sustained AI momentum, △corporate governance reform, and △deleveraging (liquidation) that followed leverage expansion. Das stated, "The AI sector requires separate discussion, but based on our own analysis, JPMorgan maintains a 'quite bullish' view on AI capital investment." He explained, "Furthermore, it is the perception of most investors that improvements in corporate governance at Korean companies are a major cause of stock price increases."
JPMorgan currently holds a "somewhat cautious" investment opinion on the Korean market in the short term. Das noted, "U.S. Treasury yields are rising and oil prices are quite high," adding, "There are medium-term concerns in the U.S. equity market."
However, from a six- to 12-month perspective, the Korean market is assessed as having significant upside potential. Das stated, "According to JPMorgan estimates, the KOSPI market is trading at a 12-month forward PER (price-to-earnings ratio) of 5.6 times, and even excluding memory semiconductor stocks, the 12th-month forward PER stands at 9.2 times." He diagnosed that similar figures appear from the perspective of PBR (price-to-book ratio) valuation as well.
Previously, Goldman Sachs also reaffirmed its positive outlook on South Korea's stock market while maintaining its forecast for the KOSPI to reach the 12,000 level. Kevin Snider, Goldman Sachs' Asia-Pacific representative, met with Financial Services Commissioner Lee Eui-woon the previous day and stated, "South Korea's capital markets are on the right path," adding, "The future of South Korea's stock market is bright (Very Positive)." He emphasized that Goldman Sachs had previously presented a forecast that the KOSPI index would surpass the 12,000 level. After raising its 12-month target for the KOSPI to 12,000, Goldman Sachs has continued its positive outlook on the Korean stock market.
in STOCK
