Story perspectives

Goldman Cuts South Korea KOSPI Target to 9,000 Points

By Drooid · Oct 26, 2026, 3:02 PM UTC · How we work

Summary

Story summary

Goldman Sachs cut its 12-month South Korea KOSPI target to 9,000 points, a 25% reduction.
The downgrade cites doubts over AI investment and rising funding costs.
KOSPI has fallen more than 35% from its June 2026 peak of 9,114.55.
Forward P/E is about 4×, the lowest among 18 markets since 2006.
Goldman remains overweight, seeing over 60% upside and favoring power, industrials, governance and K-pop firms.

History

Historical Context

The 1997 Asian Financial Crisis, which erupted in July 1997, forced South Korea to accept a $58 billion IMF rescue package. The IMF and World Bank demanded fiscal tightening that cut corporate borrowing by 30% and drove the KOSPI down about 50% in 1998. Today, Goldman Sachs' 2026 downgrade of the KOSPI to 9,000 points echoes those crisis-era concerns, citing AI-related investment doubts and soaring funding costs. The precedent shows that external financing strains can depress valuations, prompting policymakers and conglomerates like Samsung and Hyundai to prioritize balance-sheet resilience over speculative growth.

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Story summary

Goldman Sachs cut its 12-month South Korea KOSPI target to 9,000 points, a 25% reduction.
The downgrade cites doubts over AI investment and rising funding costs.
KOSPI has fallen more than 35% from its June 2026 peak of 9,114.55.
Forward P/E is about 4×, the lowest among 18 markets since 2006.
Goldman remains overweight, seeing over 60% upside and favoring power, industrials, governance and K-pop firms.

1 / 2