Goldman Sachs Sticks to Bullish KOSPI Target Amid Market Volatility

Goldman Sachs has maintained its positive view on the Korean stock market, despite recent struggles. The firm predicts that the KOSPI will reach 12,000 within a year, implying an additional 92% upside from current levels.

The KOSPI surged 116% since the start of the year to close at a record high of 9,114.55 on June 22, but fell 39% to its low on July 30 before rebounding 18% in a single day on July 31.

Goldman Sachs attributed the decline to concerns over the sustainability of the semiconductor memory cycle and technical factors such as selling of leveraged ETFs and short-term momentum-following investors.

The firm, however, remains bullish on the market's risk-reward profile, citing strong earnings growth projections for 2026-2028 and low valuations relative to historical ranges.

Goldman Sachs highlighted several sectors as preferred investments, including AI-related areas, industrials, governance improvement themes, reflation beneficiary sectors, and K-culture.