Goldman Sticks with Bullish Call on Korean Equities Amid Market Turmoil

South Korea's stock market has been on a wild ride after its AI-fueled rally gave way to a sharp correction. Goldman Sachs is doubling down on its bullish call for Korean equities, despite weeks of violent market swings.

The bank reiterated its overweight rating on Korean equities and its 12-month Kospi target of 12,000 in a recent note. This target implies about 80% upside from current levels.

Goldman's conviction rests largely on the outlook for memory chips. The bank's analysts believe that accelerating demand for AI computing and severe memory shortages will support chip prices and profits for longer than investors expect.