Home / Business and Economy / AI Fuels Korean Stocks: 31% Upside Predicted
AI Fuels Korean Stocks: 31% Upside Predicted
28 Nov
Summary
- JP Morgan forecasts up to 31% stock growth potential for South Korea.
- AI-driven expansion and corporate governance reforms are key drivers.
- Overweight recommendations target memory, finance, and industrial sectors.
JP Morgan has identified South Korea as the foremost 'overweight' country in its "2026 Asia Stock Market Outlook Report," projecting substantial growth driven by AI and policy support. The investment bank anticipates a potential stock price increase of up to 31% for South Korea, citing its rapid corporate governance reforms and the government's Value-up program.
The report emphasizes that South Korean companies are poised to directly benefit from the expansion of AI infrastructure. JP Morgan recommends an 'overweight' position in memory, finance, and select industrial sectors, while suggesting an 'underweight' for healthcare. The forecast for the MSCI Korea Index is 1,600 points next year.
Analysts at JP Morgan assert that despite market skepticism, the South Korean market's upside potential remains considerable, with its stocks currently undervalued. They project the KOSPI index could reach 5,000 points in a base scenario and 6,000 in a bullish scenario.
