Citi analysts said South Korea’s recent stock market selloff may be nearing its end and that the KOSPI could rebound. According to Odaily, the bank maintained its 10,000 target for the index, which is more than 50% above current levels.
The KOSPI has fallen 28% from its record high on June 22 and dropped another 4.5% on Monday. Citi said the decline was driven mainly by profit-taking and technical correction, with memory chip stocks such as Samsung Electronics and SK Hynix leading the drop, rather than a deterioration in fundamentals.
Citi said South Korea’s strong economic fundamentals, the AI semiconductor cycle, and a more favorable policy environment could support a rebound in the market. The article also said Korean retail investors had bought large amounts of leveraged ETFs tied to AI semiconductors.
Citing KB Financial Group data, the article said retail investors in South Korea made cumulative net purchases of about 14 trillion won since single-stock leveraged ETFs were listed on May 27, compared with about 2 trillion won in purchases by foreign investors. It added that the recent market pullback has put heavy pressure on leveraged positions.
Citi: KOSPI Selloff May Be Nearing an End, Keeps 10,000 Target
2026-07-21 06:23:42
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