Securities Research Heads: "Consistent Market Stimulus Policies Are Key to KOSPI 5000 Leap"

Korea Exchange, Research Center Heads Meeting
"Upper Limit for Next Year's KOSPI Projection: 4,500"

There are suggestions that for the KOSPI, which has set a historic milestone by surpassing the 4,000 mark, to leap toward the era of "KOSPI 5000," consistent government efforts to stimulate the stock market and enhanced corporate competitiveness are essential.

At the "Market Experts Meeting for the Leap to the KOSPI 5000 Era" held at the Korea Exchange in Yeouido on the 30th, research center heads from six securities firms attended to discuss future market outlooks and the challenges to achieving KOSPI 5000.

On the 30th, before the "Market Experts Meeting for the Leap to the KOSPI 5000 Era" held at the Korea Exchange in Yeouido, Jung Eunbo, Chairman of the Korea Exchange, gave a greeting. Korea Exchange

Park Heechan, Head of Research at Mirae Asset Securities, who opened the discussion, stated, "Currently, some companies, especially in the semiconductor sector, are performing well, but as China catches up in terms of price competitiveness and technology, the range of industries in which Korea maintains global competitiveness is gradually narrowing." He emphasized that redefining mid- to long-term industrial policy is a prerequisite for the sustained rise of the stock index.

Lee Byunggun, Head of Research at DB Financial Investment, highlighted the need for a comprehensive approach to the tax system. He said, "Many investors use exchange-traded funds (ETFs), but they are not fully benefiting from dividend income," and argued, "Comprehensive support, including tax measures, is needed so that investors' expectations are not diminished."

It has also been reported that overseas investors are closely watching the progress of the third amendment to the Commercial Act, which centers on the separate taxation of dividend income. Kim Jinwook, Chief Economist at Citibank Korea, noted, "Recently, foreign investors inquiring about investing in Korean stocks are highly interested in whether the corporate governance reform bill will be passed and whether the separate taxation of dividend income will proceed in a market-friendly direction." He added, "If the third Commercial Act amendment is not handled as expected during the remainder of the regular National Assembly session, it could actually act as a factor dragging down stock prices."

There were also calls for more active verbal intervention from the government and monetary authorities. Choi Kanghyuk, Head of Research at LS Securities, remarked, "The most important thing in tax reform is consistency," adding, "Regardless of any policy shortcomings, it is crucial for the government to continuously send a clear message to the market that it is committed to revitalizing the stock market with a sense of urgency." He continued, "With the won-dollar exchange rate exceeding 1,400 won per dollar, there needs to be more frequent verbal intervention by the authorities to attract foreign investors seeking currency gains."

On the 30th, before the "Market Experts Meeting for the Leap to the KOSPI 5000 Era" held at the Korea Exchange in Yeouido, Jung Eunbo, Chairman of the Korea Exchange, gave a greeting. Korea Exchange

The research heads projected that next year's KOSPI could reach around 4,500, with the possibility of going even higher depending on circumstances. Lee Jonghyeong, Head of Research at Kiwoom Securities, said, "Even though we previously set a relatively high target for the KOSPI index, it was reached faster than expected," and added, "Assuming three conditions are met, we see the upper limit for next year at 4,500." The three conditions for reaching 4,500 are: ▲ continued liquidity in the U.S. market and strong investment in artificial intelligence (AI), ▲ sustained growth in operating profits for Samsung Electronics and SK Hynix, and ▲ consistent government efforts to support the market.

Ko Taebong, Head of Research at iM Securities, pointed out the polarization of the capital market around semiconductors, stating, "If the trickle-down effect is used to foster growth and if everyone believes that wealth can increase through the stock market, then reaching KOSPI 5000 is possible."