Kospi target raised to 12,000 on 32% earnings growth
Goldman Sachs has raised its Kospi target to 12,000, implying a 90% upside. The call is based on a 5x forward earnings multiple, a level two standard deviations below historical norms, and projected 32% earnings growth this year.
Korean leveraged ETF assets under management peaked at $53 billion in June, then collapsed to $14 billion, and have since recovered to $24 billion. The two most accessible US-listed vehicles for expressing a Korea view, EWY and FLKR, are up 64.82% and 65% year to date, respectively, despite an 11% monthly pullback.
Semiconductors make up over 50% of the Kospi, making SK Hynix and Samsung key drivers of Goldman’s AI-driven earnings thesis. Korea’s 10-day volatility ran near 100% last week, well beyond most institutional risk budgets.