South Korea’s KOSPI market outlook for 2026, as per Macquarie

Investing.com -- Macquarie is forecasting another strong year for South Korean equities, arguing that the KOSPI “should near the 6,000 mark in 2026E, driven by strong earnings growth, ample liquidity, and equity-friendly government policies.” 

The analysts said the index could trade at “14x PE at 6,000 level on 48% EPSg in 2026E,” adding that “the market, after a 70% rally YTD2025, is still cheap.”

Daniel Kim at Macquarie highlighted earnings strength across the firm’s Korea coverage. 

He wrote that “the Macquarie Korea universe of 103 stocks, or 70% of the KOSPI/KOSDAQ, should register 48% EPS growth in 2026E.” 

Macquarie expects memory giants Samsung Electronics and SK Hynix to play an outsized role, saying the two companies “account for 52% of total net profits in 2026E, and for 68% of the profit increase.”

A prolonged supply imbalance in memory semiconductors underpins part of the bullish stance. Kim stated that the industry is experiencing “the worst memory crunch in history and see no signs of easing supply in the next 2 years.” 

The analyst argued that “the upside to memory prices is sizeable,” with the market not yet reflecting “the full potential in current earnings forecasts.”

Macquarie also pointed to supportive flows, noting that “foreign fund flows activity has increased in the market” since South Korea lifted its short-selling ban in March 2025. 

Kim believes retail investors “have good reasons to step away from the U.S. market,” citing potential Korean won appreciation and KOSPI outperformance.

The firm added that the government’s value-up program remains a positive catalyst, calling it “the only initiative the new left-wing government has continued from the previous Yoon administration.” 

Macquarie’s top picks remain “memory-heavy” names, including Samsung Electronics, SK Hynix, SK Square and Samsung C&T.