Despite the KOSPI index falling more than 22% and circuit breakers (trading halts) being triggered four times last month, investment ratings from domestic brokerages were found to be extremely skewed toward “Buy.” Nine out of 10 major brokerages issued Do Ui-gyeon-i (EVP) recommendations, with the average proportion of “Buy” ratings across the 10th firms reaching 95.2%.
While it is difficult to judge the accuracy of investment ratings based on short-term stock price fluctuations, controversy is growing over whether a rating system dominated by “Buy” recommendations, regardless of bull or bear markets, provides sufficient differentiation for investors.
According to the “Status of Investment Rating Reports from 10 Domestic Brokerages in July 2026,” submitted by the Korea Financial Investment Association to the office of Ahn Cheol-soo, a member of the People Power Party, on the 1st, the proportion of “Buy” rating reports for individual stocks was close to 100%, with Daishin Securities at 98.8%, Hana Securities at 98.7%, and Kiwoom Securities at 98.3%. Even Korea Investment & Securities, which had the lowest proportion of “Buy” ratings, reached 89.5%.
In contrast, “Sell” recommendations were virtually “zero.” Among the 10th firms, only Kiwoom Securities issued any “Sell” ratings, accounting for just 1.0% of its reports. The remaining nine firms had not a single “Sell” recommendation. Over a broader period, from July last year to June this year, the proportion of “Buy” recommendations from domestic brokerages ranged from 80% to 100%.
The distribution of investment ratings from foreign-affiliated brokerages over the same period was markedly different. Macquarie Securities had 50.7% “Buy,” 27.5% “Neutral,” and 21.7% “Sell.” Merrill Lynch’s Seoul branch also recorded 56.1%, 22.5%, and 21.4%, respectively.
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