EWY
The bull case for Korea just got louder
Goldman Sachs is telling clients to stop sleeping on South Korea. The bank bumped its 12-month target for the KOSPI to 8,000 from 7,000, leaning on a forecast for 2026 earnings growth of 220% — which is the kind of number that makes you do a double take and check whether you read it right the first time.
Why the math suddenly looks prettier
The call rests on broad fundamental improvement across key sectors, not just one flashy name doing all the heavy lifting. In plain English: Goldman thinks the earnings backdrop is getting strong enough that the index can keep climbing even if the macro weather isn’t perfect.
The downside case still isn’t scary
Even Goldman’s uglier scenario doesn’t sound like a full-blown disaster movie. The bank said that if earnings get downgraded by 33% and the index gets valued at 11x, the KOSPI could still land around 6,250. That’s less “panic” and more “okay, there’s a floor here.”
Why investors should care
The other big hook is positioning. Korea remains underweighted in major emerging market, Asia ex-Japan, and global mutual funds, which means there may still be room for money to pile in if sentiment keeps improving. Big picture: this is the kind of call that can turn a sleepy regional market into the next crowded trade — if the earnings story actually shows up.