JPMorgan: "KOSPI Could Reach 5,000 Within Two Years"

JPMorgan Upgrades Korean Stocks to 'Overweight'
KOSPI Could Surge Over 50% in Two Years with Governance Reforms

Reuters Yonhap News

U.S.-based investment bank JPMorgan has raised its investment rating on Korean stocks from 'neutral' to 'overweight,' forecasting that the KOSPI index could reach 5,000 within the next two years.

According to Bloomberg News on July 11 (local time), JPMorgan stated in a report that if Korea's corporate governance reforms gain momentum, the KOSPI index could rise by more than 50% over the next two years.

In the report, JPMorgan said, "Korea remains a key overweight market among Asian and emerging economies," adding, "With the KOSPI index up 32% this year and approaching an all-time high, it could potentially rise to around 5,000 in the future."

This outlook is based on President Lee Jaemyung's commitment to advancing governance reforms and his pledge to achieve 'KOSPI 5000' during his term, which led JPMorgan to upgrade its investment view on Korean stocks from 'neutral' to 'overweight.'

JPMorgan stated, "As long as reforms proceed smoothly, we recommend additional buying whenever market volatility occurs," and added, "Concerns over tariffs, slowing growth, and bond market fluctuations, as well as global and regional stock market volatility, could quickly trigger buying activity."

JPMorgan also projected that the KOSPI could trade in the 3,200 to 3,500 range for the remainder of this year.

However, JPMorgan noted, "Ironically, recent foreign buying momentum is much weaker than at the beginning of 2024," and added, "Given the interest shown by global investors, we believe this is an attempt to find a better entry point."