KOSPI Hits New Highs as Stock Forecasts Keep Rising, Semiconductor Rally Sparks Attention

KOSPI Continues to Reach Record Highs

Since the start of the new year, the Korea Composite Stock Price Index (KOSPI) has been hitting new all-time highs, maintaining its upward momentum. On January 7th, major Korean securities firms raised their annual target forecasts for the KOSPI once again.

Daewoo Securities significantly increased its target from 4,600 to 5,650, citing soaring profits from semiconductor-focused companies as the main driver.

Reasons Behind the Upward Revisions by Different Firms

Kim Dae-jun, an analyst at Daewoo Securities, explained, "As of January 6th, the 12-month forward EPS (earnings per share) for the KOSPI was 28.8% higher than the October 2025 forecast, standing at 435 points." He added that this change was factored into their revised outlook.

• Goldman Sachs: Revised from 3,800–4,600 to 4,200–5,200 (boosted by strong earnings from Samsung Electronics and SK Hynix)
• JPMorgan Chase: Raised from 4,500 to 5,200

These firms mainly credit the improved earnings outlook for semiconductor giants Samsung Electronics and SK Hynix as the key reasons behind the upward revisions.

Currency Fluctuations and Declining Foreign Exchange Reserves

While the KOSPI continues to climb, the USD/KRW exchange rate edged up by 1.7 won to close at 1,445 won. The Bank of Korea announced that Korea’s foreign exchange reserves fell to $428 billion in December, marking the largest monthly decrease in 28 years.

This decline is seen as a consequence of efforts to defend the won, drawing market attention to the currency’s recent movements.

Seoul’s New Year Economic Outlook Highlights Growth and Business Support

On January 7th, Seoul Mayor Oh Se-hoon and Korea Chamber of Commerce and Industry President Choi Tae-won delivered New Year’s messages at the 2026 Seoul New Year Business Meeting held at the Korea Chamber of Commerce in Jung-gu. Both emphasized the importance of economic growth and supporting local businesses.

This event served as a platform to discuss economic prospects and regional economic policies for the year ahead.

Financial Sector to Increase Transparency on Executive Compensation

This year, financial institutions will publicly disclose detailed salary information by gender and job level in their annual reports. Changes to corporate governance laws are expected to lead to more transparent internal pay structures.

This move is part of ongoing efforts to promote gender equality and fair pay, following recommendations raised during last year’s government audits. Banks are already feeling the ripple effects of these new disclosure requirements.