Korean brokers flag further Kospi decline amid weak foreign demand and low trading

Brokerages in South Korea are cautioning investors that the Kospi could face additional downside. Korea Investment & Securities identified a potential floor near 5,200 points, noting that a rapid rebound looks unlikely given continued foreign selling and shrinking trading activity. Goldman Sachs lowered its 12-month forecast by a quarter to 9,000, though it still views Korean equities as attractive on a risk-reward basis.

The index ended last week at 5,550.30, marking a fourth consecutive week of losses and a sharp drop in average daily turnover from its June peak. Weakening buy-back support from Samsung Electronics and SK hynix, along with doubts about AI investment returns, have added pressure to semiconductor stocks. Analysts also point to external risks such as France’s fiscal strain, higher oil prices and Middle-East tensions, while central-bank meetings this week could influence market direction.