SEOUL: Nomura became the first brokerage to project the Kospi at 8,000 in the first half of this year, setting a new high-water mark for targets as South Korea’s benchmark extends a record-breaking rally.
Nomura Financial Investment, the Seoul unit of Japan’s Nomura Holdings, raised its first-half outlook to 7,500 in a base case and 8,000 in a bull case in a report released on Monday.
From the current 5,900 level, that implies potential gains of roughly 27% to 36% over the next four months.
Cindy Park, Nomura’s head of South Korea research, cited stronger earnings in the memory sector and improving corporate value as key drivers behind the upgrade.
Memory companies are expected to account for more than 60% of South Korea’s total net profit this year, placing them at the centre of earnings growth.
She added that effective implementation of corporate governance reforms could ease the South Korean discount and unlock further upside.
The 8,000 call comes as brokerages at home and abroad steadily lift their projections amid the market’s surge.
After ending 2025 at 4,214, the Kospi climbed past 5,000 intraday for the first time on Jan 22 and has since pushed above 5,900, brushing off volatility tied to tech earnings concerns and geopolitical risks.
On Tuesday, the index extended gains to a fresh intraday high of 5,969.64, taking its year-to-date advance to nearly 42%. A day earlier, it broke above 5,900 for the first time, capping a four-day rally of more than 7%.
Chipmakers Samsung Electronics and SK hynix led the rally, each hitting fresh milestones as Samsung crossed 200,000 won and SK hynix topped one million won for the first time.
The moves leave the two stocks up about 67% and 54%, respectively, from their year-end levels.
With momentum showing little sign of easing, strategists are increasingly shifting their focus to 7,000.
Kiwoom Securities on Tuesday raised its upper-end forecast to 7,300 from 6,000, saying a move above 6,000 was now a matter of timing rather than feasibility.
Kiwoom analyst Han Ji-young said solid fundamentals and attractive valuations should help the Kospi withstand external headwinds, including tariff risks and doubts over artificial intelligence-related stock profitability.
Further room for upward earnings revisions, supportive valuations and a neutral foreign flow backdrop suggested that upside drivers are not yet exhausted, he said.
Han also noted that Bloomberg’s 12-month consensus target for the Kospi currently stands in the 6,500 range, underscoring improving sentiment among foreign investors towards South Korean equities.
Other houses have also raised their ceilings in recent days, with Hana Securities projecting 7,900, NH Securities 7,300 and Korea Investment & Securities 7,250.
The Kospi logged another record close on Tuesday, up more than 2% at 5,969.64. Institutional investors were the sole net buyers, purchasing about 2.37 trillion won worth of shares on the Kospi.
Retail investors weighed on gains with net sales of 2.29 trillion won, while foreign investors were modest net sellers, offloading roughly 200 billion won. — The Korea Herald/ANN
