Korea Stocks Surge 70% This Year, Leading Globally! JPMorgan Raises Target: At Least 20% More Upside in Next Year

This year, the South Korean stock market has been one of the “brightest stars” globally—the Korea Composite Stock Price Index (KOSPI) has risen nearly 70% year-to-date, virtually topping the world.

 

JPMorgan said that from a valuation perspective, the index remains undervalued, suggesting its rally could continue in the medium to short term.

JPMorgan Raises Target

On Monday, the KOSPI broke through the 4,000-point milestone for the first time, hitting a record high. Against this backdrop, JPMorgan raised its 12-month target for the KOSPI to 5,000 points on Wednesday, with an optimistic scenario reaching 6,000 points.

 

Korea KOSPI Index Performance Year-to-Date  

 

This implies JPMorgan expects the KOSPI to rise at least 20% over the next 12 months.  

 

JPMorgan said: “It’s necessary to hold the view that short-term pullbacks are another buying opportunity.”  

Prioritizing Semiconductors and More  

JPMorgan pointed out that one key driver of the KOSPI’s rise this year is the leadership from Korea’s top two tech giants by market cap—Samsung Electronics and SK Hynix. Amid the AI boom, these two companies have seen soaring demand for memory chips, driving their shares higher.  

 

Year-to-date, SK Hynix shares have surged 218.63%, and Samsung shares are up 86.52%, contributing the bulk of the KOSPI’s gains.  

 

Meanwhile, Korea’s shareholder return policies, including stock buybacks, are optimizing, aiding the market’s overall valuation uplift.  

 

JPMorgan listed its top picks: Samsung Electronics, SK Hynix, Hanwha Aerospace, Hyundai Motor, Naver, Shinhan Financial Group, Samsung C&T, Samsung Life Insurance, and HD Hyundai Heavy Industries.  

 

The firm noted: “A strategy overweighting semiconductors, finance, and select industrials is viable for the KOSPI.”