JPMorgan Predicts Korean Stock Market to Rise 50% in Two Years  

JPMorgan strategists released a report on Friday forecasting that the Kospi index could rise over 50% from current levels within two years, potentially hitting 5,000 points.

 

The index closed at about 3,176 points on Friday, up 32% year-to-date, nearing its historical peak.  

JPMorgan expects the Kospi to trade between 3,200 and 3,500 points for the rest of this year, making it one of the world’s best-performing indices in 2025.

 

This bullish outlook follows the firm’s upgrade of Korean stocks from neutral to overweight this week.

 

The bank highlights new President Lee Jae-myung’s commitment to a “next phase of governance reform” and his pledge to lift the Kospi to 5,000 points during his five-year term, while addressing the long-standing “Korea discount” issue for global investors.  

Reform Expectations Ignite Market Enthusiasm  

During his campaign, Lee set a goal of reaching 5,000 points for the Kospi—a significant jump from current levels—aiming to boost local stock valuations and end the “Korea discount.”

“Now is the time to change everything… to make the market attractive long-term,” Lee said during a visit to the Korea Exchange.

 

His recent trip, a rare early-term visit by a Korean leader, underscored his pledge to double stock market growth.

 

Lee emphasized cracking down on market misconduct, using tax reforms to encourage higher dividends, and better supporting investors.  

Foreign Investors Cautious Yet Interested  

Despite strong market performance, foreign buying remains restrained. JPMorgan strategists noted, “Ironically, foreign inflows are far less active than early 2024.”

 

However, they suggest this reflects investors seeking better entry points, with growing global interest in Korea.

 

They added, “As long as reforms stay on track, we recommend overweighting during any dips. Summer volatility—be it tariff concerns, growth slowdowns, or bond market shifts—could spark quick buying.”