World's Largest Asset Manager: "Upgraded Emerging Markets to 'Overweight' After Reviewing Korean Stock Market"

BlackRock, the world’s largest asset management firm, has stated that the Korean stock market is a key reason behind its recent decision to upgrade its outlook on emerging market equities. The company explained that Korean corporate profits are rising rapidly and that the market stands to benefit from the expanding global demand for semiconductors.

On the 16th, amid expectations for a second round of negotiations between the United States and Iran pushing the S&P 500 index in New York to an all-time high, the domestic stock market also opened nearly 1% higher. At the dealing room of Hana Bank headquarters in Jung-gu, Seoul, an employee is monitoring the stock market and exchange rates. On this day, the KOSPI opened at 6,149.49, up 58.10 points (0.95%) from the previous trading day. April 16, 2026 Photo by Yongjun Cho

According to Bloomberg News on April 16, BlackRock recently raised its investment outlook for both U.S. and emerging market equities to ‘overweight,’ assessing that both markets have significant potential for earnings improvement. The company noted that, despite the ongoing war in Iran, corporate earnings forecasts for this year have actually increased. BlackRock attributed this, in part, to heightened expectations surrounding artificial intelligence (AI).

Wei Li, Global Chief Investment Strategist at BlackRock, said, “Korea is one of the main reasons we upgraded our investment view on emerging markets,” emphasizing, “Korea is showing remarkable momentum as part of the technology supply chain ecosystem.” She further mentioned the robust demand for AI-related hardware, adding, “We definitely have a positive outlook on Korea.”

According to Bloomberg data, the forward earnings growth forecast for the KOSPI has soared from 43% at the beginning of the year to around 170% recently. Although the KOSPI experienced significant volatility following the escalation of tensions in the Middle East, it has recovered most of its losses. The index has surged more than 47% so far this year, outperforming major global stock markets.

The concentration of investment in a few large semiconductor stocks has been cited as a concern. However, BlackRock argued that such a phenomenon is actually a natural characteristic during periods of technological transition. “Some view market concentration as a problem, but during a technological paradigm shift, this kind of focus is a natural feature,” Li said, adding, “We are not particularly concerned about the current structure where a few stocks dominate.”

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