As the KOSPI index broke through the 6,000-point level for the first time, expectations for further gains have grown. With profit and share price forecasts for Samsung Electronics and SK Hynix continuing to rise, some reports are now suggesting that the index could surpass 7,000 and even reach 8,000. However, there are also warnings that the market is approaching a time for a correction, as the index has climbed steeply in a short period and short-selling dry powder has increased.

Securities firms keep raising their target prices for Samsung Electronics and SK Hynix. On the 24th, SK Securities raised its target price for Samsung Electronics to 300,000 won and for SK Hynix to 1.6 million won. This implies upside potential of around 50% from current levels.

Han Donghee, an analyst at SK Securities, said, "This is the first time a memory boom has coincided with a liquidity expansion," adding, "The re-rating has not even started yet, and among global artificial intelligence (AI) related stocks, Korean memory names are the cheapest," signaling further upside for Samsung Electronics. On SK Hynix, he analyzed that "if the plan to list in the U.S. market in the form of American Depositary Receipts (ADRs) becomes more concrete, the undervaluation will become even more pronounced."

On the 25th, as the KOSPI index exceeded 6,000 intraday for the first time in history, employees at Woori Bank's dealing room in Jung-gu, Seoul, were at work. 2026.02.25 Photo by Yun Dongju

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Park Junyoung, an analyst at Hanwha Investment & Securities, also set a target price of 260,000 won for Samsung Electronics the previous day, saying, "We expect a recovery in competitiveness in high-bandwidth memory (HBM) 4 and the resulting multiple re-rating, as well as explosive earnings growth driven by its overwhelming memory production capacity."

As share price forecasts for Samsung Electronics and SK Hynix rise, the upper end of KOSPI targets is also being revised upward. On the 23rd, Nomura Financial Investment raised its upper KOSPI target for the first half of this year to 8,000. Nomura analyst Cindy Park said, "Thanks to the super-cycle in commodity memory and HBM, and solid earnings across the AI capital expenditure value chain, further upside in the KOSPI is possible."

On the 19th, Hana Securities raised the upper band of its KOSPI forecast to 7,900. At the end of last year, Hana Securities projected KOSPI net profit for 2026 at 330 trillion won, but this month sharply revised it up to 457 trillion won. Hana Securities analyst Lee Jaeman analyzed, "Considering the 12?month forward net profit of the semiconductor sector, there is theoretically 74.8% upside potential for share prices compared with current levels."

JP Morgan (7,500), NH Investment & Securities (7,300), Kiwoom Securities (7,300), and Korea Investment & Securities (7,250) have also successively raised their KOSPI targets into the 7,000?point range.

Investor deposits, which serve as dry powder for the stock market, have also increased sharply, enhancing the possibility of further gains.

According to the Korea Financial Investment Association, investor deposits reached 100.283 trillion won on the 27th of last month, surpassing 100 trillion won for the first time. The figure continued to rise, hitting an all-time high of 111.297 trillion won on the 2nd of this month.

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The total net assets of domestic exchange-traded funds (ETFs) stood at 374.3611 trillion won as of the 24th, up 77.2211 trillion won so far this year, helping to lift the stock market.

Lee Kyungmin, an analyst at Daishin Securities, said, "The more AI efficiency is maximized, the more demand for the infrastructure needed to run it is bound to increase," explaining that "semiconductor stocks such as Samsung Electronics and SK Hynix are being identified as beneficiaries of AI-driven disruption, rising more and pulling the index higher."

Government measures to invigorate the capital market are also continuing. On this day, Financial Supervisory Service Governor Lee Chanjin met with chief executive officers (CEOs) of foreign financial institutions and requested, "Please actively share your views on what is needed to improve Korea's financial markets and proactively participate in efforts to advance the capital market." Regarding the recent boom in the domestic stock market, he assessed, "It reflects the market's validation of the potential of Korea's capital market and its trust in the financial authorities' efforts to vitalize the capital market."

Governor Lee held a meeting with CEOs of foreign financial firms at the Conrad Hotel in Yeouido, Seoul, that day, saying, "The domestic stock market is experiencing a historic boom, as evidenced by the KOSPI recently breaking through 6,000," and explained that, through ongoing communication with foreign financial companies, the authorities have achieved institutional improvements enhancing market accessibility, such as abolishing the foreign investor registration system and expanding English-language disclosures.

He added, "The authorities view the capital market as a core platform for economic growth and are pursuing capital market innovation policies," and said, "Based on your experience in global financial markets and understanding of regulatory environments, please actively offer your opinions on what is needed to improve Korea's financial markets."

However, some are warning against excessive optimism about the stock market, and bets on a downturn in the index are increasing. According to the Korea Financial Investment Association, the balance of securities lending transactions stood at 153.0131 trillion won as of the previous day. This is more than 14 trillion won higher than the 138.6285 trillion won recorded at the end of last month, reached in just 13 trading days. Securities lending, in which an investor lends shares to another investor for a fee, is generally regarded as a leading indicator of short selling.

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The net balance of short positions in terms of amount also totaled 21.872 trillion won on the combined KOSPI and KOSDAQ markets as of the 19th. This is an increase of 704.6 billion won from 21.1674 trillion won at the end of last month. A large net short balance, representing short-sold shares that have not yet been repurchased, means that many investors are betting on further share price declines. The increase in funds betting on a downturn is interpreted as reflecting mounting concerns about short-term overheating, as domestic stock indices, particularly the KOSPI, have risen steeply since the beginning of this month.

On the 19th, DB Financial Investment set its KOSPI forecast in the 4,300 to 5,700 range, the lowest among securities firms. Given the recent mood surrounding the KOSPI, this is effectively close to a sell recommendation. DB Financial Investment analyst Kang Hyunki warned, "As AI facility investment increases, employment could deteriorate and consumption could fall, heightening economic instability," adding, "In that case, corporate bond issuance would contract and AI investment could also slow."