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Investing.com -- South Korea’s stock market could hit 7,500 points by the end of 2026 as growing semiconductor earnings draw foreign investors back and fuel a broad re-rating of Korean equities, according to KB Securities.
The brokerage projects KOSPI operating profit will reach 792 trillion won in 2026, a 165% jump from the prior year, driven primarily by earnings at Samsung Electronics and SK hynix. That figure is forecast to climb further to 1.04 trillion won in 2027, surpassing the 1 trillion won threshold for the first time.
Earnings growth is also expected to broaden beyond semiconductors to sectors including defense, shipbuilding, machinery, oil refineries, energy, and robotics.
By 2027, KB Securities expects Samsung Electronics to rank first globally in operating profit at 488 trillion won, ahead of Nvidia at 485 trillion won and SK hynix at 358 trillion won.
Analyst Jeff Kim believes that the memory semiconductor industry is likely to "evolve toward a foundry-like model (i.e., orders first, then production), similar to the business structure of TSMC, which should serve as a key catalyst for the re-rating of Korean memory semiconductor companies."
He also outlines a broader economic case for Korea. Combined corporate tax revenues from Samsung Electronics and SK hynix are projected to rise twelvefold to 141 trillion won in 2026, which could reduce government bond issuance and trigger a positive bond market reaction.
The two companies’ combined 2026 net profit is estimated at $316.8 billion, equivalent to roughly 75% of Korea’s foreign exchange reserves.
Upcoming semiconductor investments in Pyeongtaek and the Yongin cluster are also expected to bring in substantial dollar inflows, supporting stabilization of the won against the dollar.
KB highlights that foreign investors sold a net 66 trillion won in Korean equities and bonds between February and March, driven by profit-taking and geopolitical concerns. But Kim says that trend is likely to reverse.
Valuation-wise, KOSPI is currently trading at a 12-month forward price-to-book ratio of 1.4x, a steep discount to the global average of 3.1x and the Asia emerging markets average of 2.0x. Relative to markets with comparable return-on-equity levels — the U.S. at 4.5x and Taiwan at 3.9x — Korea looks inexpensive.
"Interest in KOSPI should increase," Kim wrote, flagging Samsung Electronics, SK hynix, and Hyundai Motor as names that are most likely to draw investor attention.