Goldman Sachs Downgrades South Korean Stock Market Investment Rating to 'Neutral'

[Asia Economy Reporter Dongwoo Lee] The American investment bank Goldman Sachs has downgraded its investment opinion on the Korean stock market.

According to the financial investment industry on the 29th, Goldman Sachs stated in its 'Asia Pacific Portfolio Strategy' report published the day before that it has downgraded its investment opinion on the Korean stock market from 'overweight' to 'neutral.'

Goldman Sachs analyzed that despite the solid domestic macro outlook in Korea, the global environment is moving in an unfavorable direction due to growth slowdown and fiscal tightening. It also expressed concerns that Korea, which is greatly affected by the global economy, may face headwinds.

Along with this, Goldman Sachs lowered next year's KOSPI target index from the previous 3700 to 3350.

Regarding next year's Gross Domestic Product (GDP) growth rate, it forecasted growth driven by consumption recovery, presenting 3.4%, which is higher than the consensus (3.2%). It also predicted that the Bank of Korea will raise interest rates twice more next year, with the benchmark rate peaking at 2.5% in the second half of 2024.