Live Markets: Kospi parties like it's 1999, Citi ups price target

Eugene Technology

07/05/2026 11:56

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KOSPI PARTIES LIKE IT'S 1999, CITI UPS PRICE TARGET

South Korea's benchmark index has been trading in an almost vertical line, hitting another new record on Thursday, driven by surging semiconductor stocks.

The Kospi .KS11 is up almost 80% this year, after a 75% gain in 2025. That was its biggest yearly rise since 1999.

Its two largest companies, Samsung Electronics 005930.KS and SK Hynix 000660.KS, are worth about $2 trillion combined, making up just under 50% of the index as a whole. Both are engaged in the manufacturing of memory semiconductors.

The strength in the sector has prompted Citi analysts to up their price target for the index.

"In terms of fundamental window, we continue to believe Korean companies are expected to see robust growth, supported by AI demand upcycle and expansionary fiscal policies including AI & innovation investment funds," says Citi's Jin-Wook Kim.

"With the unprecedented financial support, we expect Korean industries to see a solid growth centered on AI, robotics, and exporters throughout 2026E and 2027E," Kim adds.

The firm has raised its target for the Kospi to 8,500 from 7,000 previously, implying about 13% upside from its current level. Its top picks include Samsung Electronics , Eugene Technology 084370.KQ and Doosan 000150.KS in the semiconductor/hardware space, supported by robust long-term demand from AI inference demand and growing trends for chip customisation.

(Samuel Indyk)

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