Citi: Still bullish on the Korean stock market, KOSPI target set at 10,000 points

Odaily reports that Citi analysts indicate the recent sharp correction in the South Korean stock market may be nearing its end, with the Korea Composite Stock Price Index (KOSPI) expected to potentially rebound in the future. The 10,000-point target price is maintained, implying an upside of more than 50% from the current level.

The South Korean stock market has recently experienced significant volatility, with KOSPI dropping a cumulative 28% from its all-time high on June 22, and a further 4.5% decline on Monday. Citi believes this decline has been mainly driven by profit-taking and technical corrections in the market, particularly led by storage chip companies such as Samsung Electronics and SK Hynix, rather than a deterioration in fundamentals. Citi points out that South Korea's strong economic fundamentals, the AI semiconductor cycle, and a more favorable policy environment could become important drivers for a market rebound.

Previously, South Korean retail investors made large purchases of leveraged ETF products related to AI semiconductors. According to KB Financial Group data, since the listing of single-stock leveraged ETFs on May 27, South Korean retail investors have made net purchases totaling about 14 trillion won (approximately 9.4 billion US dollars), far exceeding the approximately 2 trillion won bought by foreign investors. The recent market correction has put significant pressure on leveraged funds. (CNBC)