{
  "id": 16542766,
  "title": "Goldman Sachs Cuts KOSPI Target to 9,000, Still Seeing Over 60% Upside",
  "url": "https://urgent.news/2026/10/26/goldman-sachs-cuts-kospi-target-to-9-000-still-seeing-over-60-upside",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-26T01:32:52.000Z",
  "source": {
    "name": "BusinessKorea",
    "slug": "businesskorea",
    "url": "https://www.businesskorea.co.kr/news/articleView.html?idxno=279607"
  },
  "original_language": "en",
  "account": "Goldman Sachs has adjusted its 12-month target for South Korea's KOSPI index downwards, from 12,000 to 9,000, amid growing concerns about AI infrastructure investments and the recent market decline. The bank's strategists, including Timothy Moe, cited the KOSPI's 35% drop from its June high as a key factor in the revision. Despite the reduction, Goldman Sachs maintains that South Korean equities remain undervalued, estimating more than 60% upside potential from the current level. The KOSPI's forward price-to-earnings ratio has fallen to around four times earnings, a historically low level since 2006. Semiconductor valuations also suggest a potential 65% decline in 2027 earnings, indicating an overly pessimistic outlook. The market's weakness is driven by concerns over AI investment profitability, affecting major semiconductor stocks like Samsung Electronics and SK hynix. Despite the overall index target cut, Goldman Sachs remains bullish on certain sectors such as power-related stocks, industrials, and companies benefiting from corporate governance improvements. The bank also sees potential opportunities in beneficiaries of a domestic economic recovery and the global popularity of Korean culture.",
  "summary": "Goldman Sachs has lowered its 12-month target for South Korea's KOSPI index by 25%, from 12,000 to 9,000. The revision reflects growing concerns over returns on artificial intelligence (AI) infrastructure investment and the stock market's recent sharp decline, prompting the investment bank to adopt",
  "key_points": [
    "Goldman Sachs lowers KOSPI target to 9,000 from 12,000",
    "AI infrastructure investments and market decline cited as concerns",
    "Over 60% upside potential still seen despite target cut"
  ],
  "editors_take": "Lowering the index target reflects growing anxiety over artificial intelligence profitability while the massive upside potential suggests that current semiconductor valuations have become excessively pessimistic for long-term investors.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}