Kospi rally goes beyond Samsung, SK hynix: JP Morgan - The Korea Herald

JPMorgan Asia equity and quant strategist Mixo Das believes the South Korean stock market still has room to grow, driven by an AI-powered memory cycle, earnings upgrades, and ongoing corporate governa... Read original →

The Kospi rally reflects a structural recovery in AI-driven memory demand, not just momentum from Samsung and SK hynix. Technologically, Korea’s leadership in 3nm EUV enables early dominance in HBM3E and next-gen AI memory, boosting orders across upstream segments like equipment, EDA, and advanced packaging. Yet tightening U.S. export controls force Korean firms into costly compliance balancing acts between Washington and Beijing, inflating supply chain redundancy. With Micron accelerating HBM4 and Taiwan, China expanding CoWoS capacity, Korea’s duopoly may preemptively ramp capex—risking sector overheating. Over the next 12–24 months, any AI server demand shortfall could trigger sharp valuation corrections. However, sustained governance reforms and broadening participation beyond memory could enable a systemic re-rating of the entire Korean equity market.