Even if 4,000 Breaks... 'KOSPI Could Reach 7,500,' Says Securities Firm, Calling It a Short-Term Correction
- Input
- 2025-11-07 09:20:00
- Updated
- 2025-11-07 09:20:00
[Financial News] KB Securities has made a bold prediction that if the KOSPI continues its bullish run next year, it could climb as high as 7,500 points. This forecast is drawing attention as concerns about a potential Artificial Intelligence (AI) bubble are growing in the stock market.
KB Securities Sets KOSPI Target at 5,000 for Next Year
On the 6th, Kim Dong-won, a researcher at KB Securities, set next year’s KOSPI target at 5,000 points, explaining, "We believe the market has entered a bull phase for the first time in 40 years since 1985, driven by valuation expansion from the 'three lows boom' and the start of a new KOSPI earnings cycle." He added, "While this target could be revised depending on future earnings outlooks, in a long-term bull market scenario, the KOSPI could rise as high as 7,500 points."
KB Securities also noted that if a correction occurs during the bull market, the index is likely to rebound sharply afterward. Kim Dong-won stated, "In the past, after significant short-term corrections, the KOSPI rebounded strongly," and cited, "During the 1998–1999 bull market, the KOSPI nearly doubled after a 22% short-term correction."
Regarding the AI bubble debate: "Fundamentals Differ from the Dot-Com Bubble Era"
Recently, there has been controversy comparing the Artificial Intelligence (AI) industry to the dot-com bubble of 1999. However, Kim Dong-won argued, "Comparisons between the 2025 AI industry and the 1999 dot-com bubble are premature," and pointed out, "There are clear differences between the current market environment and fundamentals of dot-com companies back then, which were shaped by US government policies at the time."
He continued, "In 1999, the US was entering a period of interest rate hikes and implemented tightening policies to maintain a budget surplus, which contrasts with the current loose monetary and fiscal policies in 2025. Furthermore, the average price-to-earnings ratio (PER) of dot-com companies in 1999 was 60, whereas the average PER of AI companies in 2025 is only 30, about half that level."
For KOSPI strategy sectors, KB Securities selected semiconductors, nuclear power, defense, and securities. Its top stock picks included Samsung Electronics, SK hynix, Doosan Enerbility, KEPCO, Hyundai E&C, Hyundai Rotem, and Korea Investment Holdings.
On the 7th, the KOSPI opened at 3,963.72, down 62.73 points (1.56%), but as of 9:20 a.m., it continued to fluctuate around the 4,000 mark.
bng@fnnews.com Kim Hee-sun Reporter